IMPERIAL TOBACCO (Germany) Alpha and Beta Analysis
| ITB Stock | EUR 30.79 0.32 1.03% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as IMPERIAL TOBACCO . It also helps investors analyze the systematic and unsystematic risks associated with investing in IMPERIAL TOBACCO over a specified time horizon. Remember, high IMPERIAL TOBACCO'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 IMPERIAL TOBACCO's market risk premium analysis include:
Beta (0.25) | Alpha 0.35 | Risk 1.24 | Sharpe Ratio 0.27 | Expected Return 0.33 |
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.
IMPERIAL |
IMPERIAL TOBACCO Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. IMPERIAL TOBACCO market risk premium is the additional return an investor will receive from holding IMPERIAL TOBACCO 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 IMPERIAL TOBACCO. 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 IMPERIAL TOBACCO's performance over market.| α | 0.35 | β | -0.25 |
IMPERIAL TOBACCO 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 IMPERIAL TOBACCO's Buy-and-hold return. Our buy-and-hold chart shows how IMPERIAL TOBACCO performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.IMPERIAL TOBACCO Market Price Analysis
Market price analysis indicators help investors to evaluate how IMPERIAL TOBACCO stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading IMPERIAL TOBACCO shares will generate the highest return on investment. By understating and applying IMPERIAL TOBACCO stock market price indicators, traders can identify IMPERIAL TOBACCO position entry and exit signals to maximize returns.
IMPERIAL TOBACCO Return and Market Media
The median price of IMPERIAL TOBACCO for the period between Sat, Aug 31, 2024 and Fri, Nov 29, 2024 is 26.58 with a coefficient of variation of 5.82. The daily time series for the period is distributed with a sample standard deviation of 1.56, arithmetic mean of 26.83, and mean deviation of 1.25. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About IMPERIAL TOBACCO 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 IMPERIAL or other stocks. Alpha measures the amount that position in IMPERIAL TOBACCO 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 IMPERIAL TOBACCO 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, IMPERIAL TOBACCO's short interest history, or implied volatility extrapolated from IMPERIAL TOBACCO options trading.
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Additional Tools for IMPERIAL Stock Analysis
When running IMPERIAL TOBACCO's price analysis, check to measure IMPERIAL TOBACCO's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy IMPERIAL TOBACCO is operating at the current time. Most of IMPERIAL TOBACCO's value examination focuses on studying past and present price action to predict the probability of IMPERIAL TOBACCO's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move IMPERIAL TOBACCO's price. Additionally, you may evaluate how the addition of IMPERIAL TOBACCO to your portfolios can decrease your overall portfolio volatility.