Ark Etf Alpha and Beta Analysis
| ARKC Etf | 132.15 1.45 1.09% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as ARK. It also helps investors analyze the systematic and unsystematic risks associated with investing in ARK over a specified time horizon. Remember, high ARK'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 ARK's market risk premium analysis include:
Beta 0.0 | Alpha 0.0 | Risk 0.0 | Sharpe Ratio 0.0 | Expected Return 0.0 |
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.
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as various price indices. ARK Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. ARK market risk premium is the additional return an investor will receive from holding ARK 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 ARK. 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 ARK's performance over market.| α | 0.00 | β | 0.00 |
ARK Fundamentals Vs Peers
Comparing ARK's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze ARK's direct or indirect competition across all of the common fundamentals between ARK and the related equities. This way, we can detect undervalued stocks with similar characteristics as ARK or determine the etfs which would be an excellent addition to an existing portfolio. Peer analysis of ARK's fundamental indicators could also be used in its relative valuation, which is a method of valuing ARK by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare ARK to competition |
| Fundamentals | ARK | Peer Average |
| One Year Return | 119.60 % | (0.97) % |
ARK Opportunities
ARK Return and Market Media
The Etf did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About ARK 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 ARK or other etfs. Alpha measures the amount that position in ARK 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 ARK 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, ARK's short interest history, or implied volatility extrapolated from ARK options trading.
Build Portfolio with ARK
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as various price indices. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
ARK technical etf 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, etf market cycles, or different charting patterns.