TreeHouse Foods (Germany) Alpha and Beta Analysis
| T4H Stock | EUR 32.80 1.00 2.96% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as TreeHouse Foods. It also helps investors analyze the systematic and unsystematic risks associated with investing in TreeHouse Foods over a specified time horizon. Remember, high TreeHouse Foods' 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 TreeHouse Foods' market risk premium analysis include:
Beta 0.94 | Alpha (0.20) | Risk 2.65 | Sharpe Ratio (0.04) | Expected Return (0.10) |
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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TreeHouse Foods Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. TreeHouse Foods market risk premium is the additional return an investor will receive from holding TreeHouse Foods 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 TreeHouse Foods. 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 TreeHouse Foods' performance over market.| α | -0.2 | β | 0.94 |
TreeHouse Foods 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 TreeHouse Foods' Buy-and-hold return. Our buy-and-hold chart shows how TreeHouse Foods performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.TreeHouse Foods Market Price Analysis
Market price analysis indicators help investors to evaluate how TreeHouse Foods stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading TreeHouse Foods shares will generate the highest return on investment. By understating and applying TreeHouse Foods stock market price indicators, traders can identify TreeHouse Foods position entry and exit signals to maximize returns.
TreeHouse Foods Return and Market Media
The median price of TreeHouse Foods for the period between Sat, Aug 31, 2024 and Fri, Nov 29, 2024 is 36.6 with a coefficient of variation of 6.75. The daily time series for the period is distributed with a sample standard deviation of 2.41, arithmetic mean of 35.75, and mean deviation of 1.96. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About TreeHouse Foods 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 TreeHouse or other stocks. Alpha measures the amount that position in TreeHouse Foods 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 TreeHouse Foods 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, TreeHouse Foods' short interest history, or implied volatility extrapolated from TreeHouse Foods options trading.
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Additional Information and Resources on Investing in TreeHouse Stock
When determining whether TreeHouse Foods is a strong investment it is important to analyze TreeHouse Foods' 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 TreeHouse Foods' future performance. For an informed investment choice regarding TreeHouse Stock, refer to the following important reports:Check out TreeHouse Foods Backtesting, TreeHouse Foods Valuation, TreeHouse Foods Correlation, TreeHouse Foods Hype Analysis, TreeHouse Foods Volatility, TreeHouse Foods History and analyze TreeHouse Foods Performance. For more detail on how to invest in TreeHouse Stock please use our How to Invest in TreeHouse Foods guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
TreeHouse Foods 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.