Varta AG (Germany) Alpha and Beta Analysis
| VAR1 Stock | EUR 1.84 0.06 3.16% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Varta AG. It also helps investors analyze the systematic and unsystematic risks associated with investing in Varta AG over a specified time horizon. Remember, high Varta AG'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 Varta AG's market risk premium analysis include:
Beta (0.61) | Alpha 1.19 | Risk 14.84 | Sharpe Ratio 0.086 | Expected Return 1.28 |
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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Varta AG Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Varta AG market risk premium is the additional return an investor will receive from holding Varta AG 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 Varta AG. 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 Varta AG's performance over market.| α | 1.19 | β | -0.61 |
Varta AG 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 Varta AG's Buy-and-hold return. Our buy-and-hold chart shows how Varta AG performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Varta AG Market Price Analysis
Market price analysis indicators help investors to evaluate how Varta AG stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Varta AG shares will generate the highest return on investment. By understating and applying Varta AG stock market price indicators, traders can identify Varta AG position entry and exit signals to maximize returns.
Varta AG Return and Market Media
The median price of Varta AG for the period between Fri, Sep 13, 2024 and Thu, Dec 12, 2024 is 2.15 with a coefficient of variation of 38.49. The daily time series for the period is distributed with a sample standard deviation of 0.93, arithmetic mean of 2.41, and mean deviation of 0.75. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Varta AG 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 Varta or other stocks. Alpha measures the amount that position in Varta AG 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 Varta AG 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, Varta AG's short interest history, or implied volatility extrapolated from Varta AG options trading.
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Other Information on Investing in Varta Stock
Varta AG financial ratios help investors to determine whether Varta 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 Varta with respect to the benefits of owning Varta AG security.