Nations Trust (Sri Lanka) Alpha and Beta Analysis
| NTBN0000 | LKR 150.00 1.75 1.15% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Nations Trust Bank. It also helps investors analyze the systematic and unsystematic risks associated with investing in Nations Trust over a specified time horizon. Remember, high Nations Trust'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 Nations Trust's market risk premium analysis include:
Beta (0.07) | Alpha 0.39 | Risk 1.64 | Sharpe Ratio 0.31 | Expected Return 0.5 |
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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Nations Trust Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Nations Trust market risk premium is the additional return an investor will receive from holding Nations Trust 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 Nations Trust. 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 Nations Trust's performance over market.| α | 0.39 | β | -0.07 |
Nations Trust 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 Nations Trust's Buy-and-hold return. Our buy-and-hold chart shows how Nations Trust performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Nations Trust Market Price Analysis
Market price analysis indicators help investors to evaluate how Nations Trust stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Nations Trust shares will generate the highest return on investment. By understating and applying Nations Trust stock market price indicators, traders can identify Nations Trust position entry and exit signals to maximize returns.
Nations Trust Return and Market Media
The median price of Nations Trust for the period between Thu, Sep 5, 2024 and Wed, Dec 4, 2024 is 132.0 with a coefficient of variation of 11.15. The daily time series for the period is distributed with a sample standard deviation of 14.5, arithmetic mean of 130.07, and mean deviation of 12.22. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Nations Trust 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 Nations or other stocks. Alpha measures the amount that position in Nations Trust Bank 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 Nations Trust 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, Nations Trust's short interest history, or implied volatility extrapolated from Nations Trust options trading.
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Other Information on Investing in Nations Stock
Nations Trust financial ratios help investors to determine whether Nations 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 Nations with respect to the benefits of owning Nations Trust security.