HDFC Life (India) Alpha and Beta Analysis
| HDFCLIFE | 688.20 13.80 2.05% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as HDFC Life Insurance. It also helps investors analyze the systematic and unsystematic risks associated with investing in HDFC Life over a specified time horizon. Remember, high HDFC Life'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 HDFC Life's market risk premium analysis include:
Beta (0.18) | Alpha (0.03) | Risk 1.46 | Sharpe Ratio (0.05) | Expected Return (0.07) |
HDFC Life Quarterly Cash And Equivalents |
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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.
HDFC |
HDFC Life Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. HDFC Life market risk premium is the additional return an investor will receive from holding HDFC Life 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 HDFC Life. 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 HDFC Life's performance over market.| α | -0.03 | β | -0.18 |
HDFC Life 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 HDFC Life's Buy-and-hold return. Our buy-and-hold chart shows how HDFC Life performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.HDFC Life Market Price Analysis
Market price analysis indicators help investors to evaluate how HDFC Life stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading HDFC Life shares will generate the highest return on investment. By understating and applying HDFC Life stock market price indicators, traders can identify HDFC Life position entry and exit signals to maximize returns.
HDFC Life Return and Market Media
The median price of HDFC Life for the period between Sun, Aug 25, 2024 and Sat, Nov 23, 2024 is 718.0 with a coefficient of variation of 2.53. The daily time series for the period is distributed with a sample standard deviation of 18.21, arithmetic mean of 718.48, and mean deviation of 14.57. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Time to book profit in insurance stocks as GST meet looms Key levels here - Business Standard | 09/04/2024 |
2 | HDFC Life Insurance Company Stocks Updates HDFC Life Insurance Company Sees Minor Decline Amid Moderate... - The Economic Times | 09/24/2024 |
3 | HDFC Life Insurance Company Limited surges 4.0 public companies who own 54 percent shares profited along with institutions - Simply Wall St | 09/27/2024 |
4 | Indian insurer HDFC Lifes profit rises, but shrinking margins slam shares - Reuters.com | 10/15/2024 |
5 | HDFC Life Share Price Highlights HDFC Life Stock Price History - The Economic Times | 11/21/2024 |
About HDFC Life 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 HDFC or other stocks. Alpha measures the amount that position in HDFC Life Insurance 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 HDFC Life 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, HDFC Life's short interest history, or implied volatility extrapolated from HDFC Life options trading.
Build Portfolio with HDFC Life
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Other Information on Investing in HDFC Stock
HDFC Life financial ratios help investors to determine whether HDFC 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 HDFC with respect to the benefits of owning HDFC Life security.