BUILDERS FIRSTSOURC (Germany) Alpha and Beta Analysis
| B1F Stock | EUR 178.20 4.40 2.53% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as BUILDERS FIRSTSOURC. It also helps investors analyze the systematic and unsystematic risks associated with investing in BUILDERS FIRSTSOURC over a specified time horizon. Remember, high BUILDERS FIRSTSOURC'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 BUILDERS FIRSTSOURC's market risk premium analysis include:
Beta 0.67 | Alpha 0.14 | Risk 2.35 | Sharpe Ratio 0.12 | Expected Return 0.29 |
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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BUILDERS FIRSTSOURC Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. BUILDERS FIRSTSOURC market risk premium is the additional return an investor will receive from holding BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC. 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 BUILDERS FIRSTSOURC's performance over market.| α | 0.14 | β | 0.67 |
BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC's Buy-and-hold return. Our buy-and-hold chart shows how BUILDERS FIRSTSOURC performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.BUILDERS FIRSTSOURC Market Price Analysis
Market price analysis indicators help investors to evaluate how BUILDERS FIRSTSOURC stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading BUILDERS FIRSTSOURC shares will generate the highest return on investment. By understating and applying BUILDERS FIRSTSOURC stock market price indicators, traders can identify BUILDERS FIRSTSOURC position entry and exit signals to maximize returns.
BUILDERS FIRSTSOURC Return and Market Media
The median price of BUILDERS FIRSTSOURC for the period between Wed, Sep 4, 2024 and Tue, Dec 3, 2024 is 169.7 with a coefficient of variation of 5.18. The daily time series for the period is distributed with a sample standard deviation of 8.7, arithmetic mean of 167.88, and mean deviation of 7.07. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About BUILDERS FIRSTSOURC 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 BUILDERS or other stocks. Alpha measures the amount that position in BUILDERS FIRSTSOURC 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 BUILDERS FIRSTSOURC 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, BUILDERS FIRSTSOURC's short interest history, or implied volatility extrapolated from BUILDERS FIRSTSOURC options trading.
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Other Information on Investing in BUILDERS Stock
BUILDERS FIRSTSOURC financial ratios help investors to determine whether BUILDERS Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in BUILDERS with respect to the benefits of owning BUILDERS FIRSTSOURC security.