Small Cap Premium Stock Alpha and Beta Analysis
| RCC Stock | USD 24.46 0.10 0.41% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Small Cap Premium. It also helps investors analyze the systematic and unsystematic risks associated with investing in Small Cap over a specified time horizon. Remember, high Small Cap'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 Small Cap's market risk premium analysis include:
Beta (0.05) | Alpha 0.0344 | Risk 0.52 | Sharpe Ratio 0.0669 | Expected Return 0.0348 |
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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.
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Small Cap Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Small Cap market risk premium is the additional return an investor will receive from holding Small Cap 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 Small Cap. 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 Small Cap's performance over market.| α | 0.03 | β | -0.05 |
Small Cap 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 Small Cap's Buy-and-hold return. Our buy-and-hold chart shows how Small Cap performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Small Cap Market Price Analysis
Market price analysis indicators help investors to evaluate how Small Cap stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Small Cap shares will generate the highest return on investment. By understating and applying Small Cap stock market price indicators, traders can identify Small Cap position entry and exit signals to maximize returns.
Small Cap Return and Market Media
The median price of Small Cap for the period between Thu, Aug 29, 2024 and Wed, Nov 27, 2024 is 24.28 with a coefficient of variation of 0.87. The daily time series for the period is distributed with a sample standard deviation of 0.21, arithmetic mean of 24.27, and mean deviation of 0.17. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | 7 Best Small-Cap Tech Stocks to Buy Investing - U.S News World Report Money | 09/09/2024 |
2 | Reliance Industries-owned small-cap stock jumps 19 percent despite receiving tax notice, hits 11-week high Stock Market News - Mint | 09/23/2024 |
3 | Top 5 Undervalued Smallcap Stocks to Watch out for in 2025 - Equitymaster | 09/26/2024 |
4 | October 24, 2024 - Cabot Wealth Network | 10/24/2024 |
| Small Cap dividend paid on 30th of October 2024 | 10/30/2024 |
5 | Small-cap stocks, must-have components for any AI platform Catalysts - Yahoo Finance | 11/19/2024 |
About Small Cap 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 Small or other stocks. Alpha measures the amount that position in Small Cap Premium 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.
| 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.16 | 0.14 | 0.15 | Price To Sales Ratio | 2.59 | 1.31 | 1.25 |
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 Small Cap 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, Small Cap's short interest history, or implied volatility extrapolated from Small Cap options trading.
Build Portfolio with Small Cap
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Align your risk with return expectations
Check out Small Cap Backtesting, Small Cap Valuation, Small Cap Correlation, Small Cap Hype Analysis, Small Cap Volatility, Small Cap History and analyze Small Cap Performance. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
Small Cap 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.