Provident Financial (Germany) Alpha and Beta Analysis
| PQ3 Stock | EUR 19.60 0.30 1.55% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Provident Financial Services. It also helps investors analyze the systematic and unsystematic risks associated with investing in Provident Financial over a specified time horizon. Remember, high Provident Financial'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 Provident Financial's market risk premium analysis include:
Beta 1.33 | Alpha 0.21 | Risk 2.23 | Sharpe Ratio 0.17 | Expected Return 0.37 |
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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Provident Financial Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Provident Financial market risk premium is the additional return an investor will receive from holding Provident Financial 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 Provident Financial. 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 Provident Financial's performance over market.| α | 0.21 | β | 1.33 |
Provident Financial 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 Provident Financial's Buy-and-hold return. Our buy-and-hold chart shows how Provident Financial performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Provident Financial Market Price Analysis
Market price analysis indicators help investors to evaluate how Provident Financial stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Provident Financial shares will generate the highest return on investment. By understating and applying Provident Financial stock market price indicators, traders can identify Provident Financial position entry and exit signals to maximize returns.
Provident Financial Return and Market Media
Price Growth (%) |
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About Provident Financial 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 Provident or other stocks. Alpha measures the amount that position in Provident Financial 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 Provident Financial 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, Provident Financial's short interest history, or implied volatility extrapolated from Provident Financial options trading.
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Additional Information and Resources on Investing in Provident Stock
When determining whether Provident Financial is a strong investment it is important to analyze Provident Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Provident Financial's future performance. For an informed investment choice regarding Provident Stock, refer to the following important reports:Check out Provident Financial Backtesting, Provident Financial Valuation, Provident Financial Correlation, Provident Financial Hype Analysis, Provident Financial Volatility, Provident Financial History and analyze Provident Financial Performance. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Provident Financial 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.