Kothari Petrochemicals (India) Alpha and Beta Analysis
| KOTHARIPET | 210.43 2.52 1.21% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Kothari Petrochemicals Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Kothari Petrochemicals over a specified time horizon. Remember, high Kothari Petrochemicals' 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 Kothari Petrochemicals' market risk premium analysis include:
Beta 0.61 | Alpha (0.20) | Risk 3.04 | Sharpe Ratio (0.02) | Expected Return (0.05) |
Kothari Petrochemicals Quarterly Cash And Equivalents |
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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.
Kothari |
Kothari Petrochemicals Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Kothari Petrochemicals market risk premium is the additional return an investor will receive from holding Kothari Petrochemicals 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 Kothari Petrochemicals. 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 Kothari Petrochemicals' performance over market.| α | -0.2 | β | 0.61 |
Kothari Petrochemicals 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 Kothari Petrochemicals' Buy-and-hold return. Our buy-and-hold chart shows how Kothari Petrochemicals performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Kothari Petrochemicals Market Price Analysis
Market price analysis indicators help investors to evaluate how Kothari Petrochemicals stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Kothari Petrochemicals shares will generate the highest return on investment. By understating and applying Kothari Petrochemicals stock market price indicators, traders can identify Kothari Petrochemicals position entry and exit signals to maximize returns.
Kothari Petrochemicals Return and Market Media
The median price of Kothari Petrochemicals for the period between Tue, Sep 17, 2024 and Mon, Dec 16, 2024 is 214.11 with a coefficient of variation of 7.25. The daily time series for the period is distributed with a sample standard deviation of 15.56, arithmetic mean of 214.51, and mean deviation of 13.04. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Kothari Petrochemicals Limited Reports Earnings Results for the Second Quarter and Six Months Ended September 30, 2024 - Marketscreener.com | 11/04/2024 |
About Kothari Petrochemicals 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 Kothari or other stocks. Alpha measures the amount that position in Kothari Petrochemicals 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 Kothari Petrochemicals 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, Kothari Petrochemicals' short interest history, or implied volatility extrapolated from Kothari Petrochemicals options trading.
Build Portfolio with Kothari Petrochemicals
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Other Information on Investing in Kothari Stock
Kothari Petrochemicals financial ratios help investors to determine whether Kothari 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 Kothari with respect to the benefits of owning Kothari Petrochemicals security.