LGI Homes (Germany) Alpha and Beta Analysis
| LG1 Stock | EUR 106.00 8.00 8.16% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as LGI Homes. It also helps investors analyze the systematic and unsystematic risks associated with investing in LGI Homes over a specified time horizon. Remember, high LGI Homes' 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 LGI Homes' market risk premium analysis include:
Beta 0.96 | Alpha (0.08) | Risk 2.76 | Sharpe Ratio 0.0545 | Expected Return 0.15 |
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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LGI Homes Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. LGI Homes market risk premium is the additional return an investor will receive from holding LGI Homes 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 LGI Homes. 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 LGI Homes' performance over market.| α | -0.08 | β | 0.96 |
LGI Homes 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 LGI Homes' Buy-and-hold return. Our buy-and-hold chart shows how LGI Homes performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.LGI Homes Market Price Analysis
Market price analysis indicators help investors to evaluate how LGI Homes stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading LGI Homes shares will generate the highest return on investment. By understating and applying LGI Homes stock market price indicators, traders can identify LGI Homes position entry and exit signals to maximize returns.
LGI Homes Return and Market Media
The median price of LGI Homes for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 99.5 with a coefficient of variation of 4.43. The daily time series for the period is distributed with a sample standard deviation of 4.39, arithmetic mean of 99.29, and mean deviation of 3.58. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About LGI Homes 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 LGI or other stocks. Alpha measures the amount that position in LGI Homes 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 LGI Homes 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, LGI Homes' short interest history, or implied volatility extrapolated from LGI Homes options trading.
Build Portfolio with LGI Homes
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Additional Information and Resources on Investing in LGI Stock
When determining whether LGI Homes offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LGI Homes' 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 Lgi Homes Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lgi Homes Stock:Check out LGI Homes Backtesting, LGI Homes Valuation, LGI Homes Correlation, LGI Homes Hype Analysis, LGI Homes Volatility, LGI Homes History and analyze LGI Homes Performance. For more detail on how to invest in LGI Stock please use our How to Invest in LGI Homes guide.You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
LGI Homes 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.