Centrica PLC (UK) Alpha and Beta Analysis
| CNA Stock | 126.25 0.25 0.20% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Centrica PLC. It also helps investors analyze the systematic and unsystematic risks associated with investing in Centrica PLC over a specified time horizon. Remember, high Centrica PLC's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Centrica PLC's market risk premium analysis include:
Beta (29.95) | Alpha 148.93 | Risk 124.82 | Sharpe Ratio 0.11 | Expected Return 13.99 |
Centrica PLC Quarterly Cash And Equivalents |
|
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Centrica |
Centrica PLC Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Centrica PLC market risk premium is the additional return an investor will receive from holding Centrica PLC long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Centrica PLC. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Centrica PLC's performance over market.| α | 148.93 | β | -29.95 |
Centrica PLC expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Centrica PLC's Buy-and-hold return. Our buy-and-hold chart shows how Centrica PLC performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Centrica PLC Market Price Analysis
Market price analysis indicators help investors to evaluate how Centrica PLC stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Centrica PLC shares will generate the highest return on investment. By understating and applying Centrica PLC stock market price indicators, traders can identify Centrica PLC position entry and exit signals to maximize returns.
Centrica PLC Return and Market Media
The median price of Centrica PLC for the period between Thu, Sep 19, 2024 and Wed, Dec 18, 2024 is 121.75 with a coefficient of variation of 13.12. The daily time series for the period is distributed with a sample standard deviation of 15.75, arithmetic mean of 120.06, and mean deviation of 6.4. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
| Centrica PLC dividend paid on 14th of November 2024 | 11/14/2024 |
1 | Centrica Expands Share Buyback with Latest Acquisition - TipRanks | 11/18/2024 |
2 | Centrica PLC Expands Share Buyback Program - TipRanks | 12/09/2024 |
About Centrica PLC Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Centrica or other stocks. Alpha measures the amount that position in Centrica PLC has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Centrica PLC in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Centrica PLC's short interest history, or implied volatility extrapolated from Centrica PLC options trading.
Build Portfolio with Centrica PLC
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Other Information on Investing in Centrica Stock
Centrica PLC financial ratios help investors to determine whether Centrica Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Centrica with respect to the benefits of owning Centrica PLC security.