Advanced Drainage (Germany) Alpha and Beta Analysis
| 6DA Stock | EUR 126.95 2.00 1.60% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Advanced Drainage Systems. It also helps investors analyze the systematic and unsystematic risks associated with investing in Advanced Drainage over a specified time horizon. Remember, high Advanced Drainage'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 Advanced Drainage's market risk premium analysis include:
Beta (0.07) | Alpha (0.13) | Risk 2.51 | Sharpe Ratio (0.05) | Expected Return (0.12) |
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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Advanced Drainage Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Advanced Drainage market risk premium is the additional return an investor will receive from holding Advanced Drainage 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 Advanced Drainage. 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 Advanced Drainage's performance over market.| α | -0.13 | β | -0.07 |
Advanced Drainage 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 Advanced Drainage's Buy-and-hold return. Our buy-and-hold chart shows how Advanced Drainage performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Advanced Drainage Market Price Analysis
Market price analysis indicators help investors to evaluate how Advanced Drainage stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Advanced Drainage shares will generate the highest return on investment. By understating and applying Advanced Drainage stock market price indicators, traders can identify Advanced Drainage position entry and exit signals to maximize returns.
Advanced Drainage Return and Market Media
The median price of Advanced Drainage for the period between Sun, Sep 1, 2024 and Sat, Nov 30, 2024 is 137.7 with a coefficient of variation of 5.49. The daily time series for the period is distributed with a sample standard deviation of 7.4, arithmetic mean of 134.87, and mean deviation of 6.47. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Advanced Drainage 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 Advanced or other stocks. Alpha measures the amount that position in Advanced Drainage Systems 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 Advanced Drainage 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, Advanced Drainage's short interest history, or implied volatility extrapolated from Advanced Drainage options trading.
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Additional Information and Resources on Investing in Advanced Stock
When determining whether Advanced Drainage Systems is a strong investment it is important to analyze Advanced Drainage's 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 Advanced Drainage's future performance. For an informed investment choice regarding Advanced Stock, refer to the following important reports:Check out Advanced Drainage Backtesting, Advanced Drainage Valuation, Advanced Drainage Correlation, Advanced Drainage Hype Analysis, Advanced Drainage Volatility, Advanced Drainage History and analyze Advanced Drainage Performance. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Advanced Drainage 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.