Reliance Steel (Germany) Alpha and Beta Analysis
| RS6 Stock | EUR 291.10 1.10 0.38% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Reliance Steel Aluminum. It also helps investors analyze the systematic and unsystematic risks associated with investing in Reliance Steel over a specified time horizon. Remember, high Reliance Steel'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 Reliance Steel's market risk premium analysis include:
Beta 0.35 | Alpha 0.2 | Risk 2.15 | Sharpe Ratio 0.12 | Expected Return 0.25 |
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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Reliance Steel Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Reliance Steel market risk premium is the additional return an investor will receive from holding Reliance Steel 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 Reliance Steel. 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 Reliance Steel's performance over market.| α | 0.20 | β | 0.35 |
Reliance Steel 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 Reliance Steel's Buy-and-hold return. Our buy-and-hold chart shows how Reliance Steel performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Reliance Steel Market Price Analysis
Market price analysis indicators help investors to evaluate how Reliance Steel stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Reliance Steel shares will generate the highest return on investment. By understating and applying Reliance Steel stock market price indicators, traders can identify Reliance Steel position entry and exit signals to maximize returns.
Reliance Steel Return and Market Media
The median price of Reliance Steel for the period between Sat, Aug 24, 2024 and Fri, Nov 22, 2024 is 258.9 with a coefficient of variation of 6.12. The daily time series for the period is distributed with a sample standard deviation of 16.14, arithmetic mean of 263.76, and mean deviation of 12.39. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Reliance Steel 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 Reliance or other stocks. Alpha measures the amount that position in Reliance Steel Aluminum 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 Reliance Steel 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, Reliance Steel's short interest history, or implied volatility extrapolated from Reliance Steel options trading.
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Additional Information and Resources on Investing in Reliance Stock
When determining whether Reliance Steel Aluminum is a strong investment it is important to analyze Reliance Steel'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 Reliance Steel's future performance. For an informed investment choice regarding Reliance Stock, refer to the following important reports:Check out Reliance Steel Backtesting, Reliance Steel Valuation, Reliance Steel Correlation, Reliance Steel Hype Analysis, Reliance Steel Volatility, Reliance Steel History and analyze Reliance Steel Performance. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Reliance Steel 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.