Align Technology (Germany) Alpha and Beta Analysis
| AFW Stock | EUR 215.80 1.50 0.69% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Align Technology. It also helps investors analyze the systematic and unsystematic risks associated with investing in Align Technology over a specified time horizon. Remember, high Align Technology'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 Align Technology's market risk premium analysis include:
Beta 0.37 | Alpha 0.0223 | Risk 2.04 | Sharpe Ratio 0.0265 | Expected Return 0.054 |
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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Align Technology Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Align Technology market risk premium is the additional return an investor will receive from holding Align Technology 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 Align Technology. 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 Align Technology's performance over market.| α | 0.02 | β | 0.37 |
Align Technology 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 Align Technology's Buy-and-hold return. Our buy-and-hold chart shows how Align Technology performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Align Technology Market Price Analysis
Market price analysis indicators help investors to evaluate how Align Technology stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Align Technology shares will generate the highest return on investment. By understating and applying Align Technology stock market price indicators, traders can identify Align Technology position entry and exit signals to maximize returns.
Align Technology Return and Market Media
The median price of Align Technology for the period between Thu, Aug 29, 2024 and Wed, Nov 27, 2024 is 207.8 with a coefficient of variation of 4.99. The daily time series for the period is distributed with a sample standard deviation of 10.39, arithmetic mean of 208.41, and mean deviation of 8.49. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Align Technology 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 Align or other stocks. Alpha measures the amount that position in Align Technology 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 Align Technology 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, Align Technology's short interest history, or implied volatility extrapolated from Align Technology options trading.
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Additional Information and Resources on Investing in Align Stock
When determining whether Align Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Align Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Align Technology Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Align Technology Stock:Check out Align Technology Backtesting, Align Technology Valuation, Align Technology Correlation, Align Technology Hype Analysis, Align Technology Volatility, Align Technology History and analyze Align Technology Performance. For more detail on how to invest in Align Stock please use our How to Invest in Align Technology guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Align Technology 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.