American Express (Argentina) Alpha and Beta Analysis
| AXP Stock | ARS 22,300 175.00 0.78% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Express Co. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Express over a specified time horizon. Remember, high American Express' 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 American Express' market risk premium analysis include:
Beta 0.36 | Alpha 0.026 | Risk 1.84 | Sharpe Ratio 0.0081 | Expected Return 0.0148 |
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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American Express Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Express market risk premium is the additional return an investor will receive from holding American Express 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 American Express. 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 American Express' performance over market.| α | 0.03 | β | 0.36 |
American Express 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 American Express' Buy-and-hold return. Our buy-and-hold chart shows how American Express performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.American Express Market Price Analysis
Market price analysis indicators help investors to evaluate how American Express stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Express shares will generate the highest return on investment. By understating and applying American Express stock market price indicators, traders can identify American Express position entry and exit signals to maximize returns.
American Express Return and Market Media
The median price of American Express for the period between Fri, Aug 30, 2024 and Thu, Nov 28, 2024 is 21825.0 with a coefficient of variation of 2.56. The daily time series for the period is distributed with a sample standard deviation of 557.08, arithmetic mean of 21785.22, and mean deviation of 445.52. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About American Express 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 American or other stocks. Alpha measures the amount that position in American Express 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 American Express 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, American Express' short interest history, or implied volatility extrapolated from American Express options trading.
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Other Information on Investing in American Stock
American Express financial ratios help investors to determine whether American 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 American with respect to the benefits of owning American Express security.