Lithia Motors (Germany) Alpha and Beta Analysis
| LMO Stock | EUR 346.00 2.00 0.58% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Lithia Motors. It also helps investors analyze the systematic and unsystematic risks associated with investing in Lithia Motors over a specified time horizon. Remember, high Lithia Motors' 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 Lithia Motors' market risk premium analysis include:
Beta 1.11 | Alpha 0.33 | Risk 2.13 | Sharpe Ratio 0.17 | Expected Return 0.37 |
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.
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Lithia Motors Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Lithia Motors market risk premium is the additional return an investor will receive from holding Lithia Motors 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 Lithia Motors. 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 Lithia Motors' performance over market.| α | 0.33 | β | 1.11 |
Lithia Motors 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 Lithia Motors' Buy-and-hold return. Our buy-and-hold chart shows how Lithia Motors performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Lithia Motors Market Price Analysis
Market price analysis indicators help investors to evaluate how Lithia Motors stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Lithia Motors shares will generate the highest return on investment. By understating and applying Lithia Motors stock market price indicators, traders can identify Lithia Motors position entry and exit signals to maximize returns.
Lithia Motors Return and Market Media
The median price of Lithia Motors for the period between Tue, Sep 24, 2024 and Mon, Dec 23, 2024 is 331.49 with a coefficient of variation of 11.49. The daily time series for the period is distributed with a sample standard deviation of 37.03, arithmetic mean of 322.28, and mean deviation of 34.6. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Lithia Motors 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 Lithia or other stocks. Alpha measures the amount that position in Lithia Motors 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 Lithia Motors 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, Lithia Motors' short interest history, or implied volatility extrapolated from Lithia Motors options trading.
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Additional Information and Resources on Investing in Lithia Stock
When determining whether Lithia Motors is a strong investment it is important to analyze Lithia Motors' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Lithia Motors' future performance. For an informed investment choice regarding Lithia Stock, refer to the following important reports:Check out Lithia Motors Backtesting, Lithia Motors Valuation, Lithia Motors Correlation, Lithia Motors Hype Analysis, Lithia Motors Volatility, Lithia Motors History and analyze Lithia Motors Performance. For more detail on how to invest in Lithia Stock please use our How to Invest in Lithia Motors guide.You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Lithia Motors technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.