BAE Systems (UK) Alpha and Beta Analysis
| BA Stock | 1,334 8.50 0.64% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as BAE Systems plc. It also helps investors analyze the systematic and unsystematic risks associated with investing in BAE Systems over a specified time horizon. Remember, high BAE Systems' 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 BAE Systems' market risk premium analysis include:
Beta 0.96 | Alpha (0.08) | Risk 1.67 | Sharpe Ratio 0.0263 | Expected Return 0.0438 |
BAE Systems Quarterly Cash And Equivalents |
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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.
BAE |
BAE Systems Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. BAE Systems market risk premium is the additional return an investor will receive from holding BAE Systems 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 BAE Systems. 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 BAE Systems' performance over market.| α | -0.08 | β | 0.96 |
BAE Systems 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 BAE Systems' Buy-and-hold return. Our buy-and-hold chart shows how BAE Systems performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.BAE Systems Market Price Analysis
Market price analysis indicators help investors to evaluate how BAE Systems stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading BAE Systems shares will generate the highest return on investment. By understating and applying BAE Systems stock market price indicators, traders can identify BAE Systems position entry and exit signals to maximize returns.
BAE Systems Return and Market Media
The median price of BAE Systems for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 1292.0 with a coefficient of variation of 2.82. The daily time series for the period is distributed with a sample standard deviation of 36.62, arithmetic mean of 1296.78, and mean deviation of 27.73. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | BAE Systems plc Insider Tom Arseneault Sells 152,999 Shares - MarketBeat | 10/23/2024 |
2 | BAE Systems contract with US Army for MCSKS system - Marketscreener.com | 11/19/2024 |
About BAE Systems 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 BAE or other stocks. Alpha measures the amount that position in BAE Systems plc 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 BAE Systems 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, BAE Systems' short interest history, or implied volatility extrapolated from BAE Systems options trading.
Build Portfolio with BAE Systems
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Other Information on Investing in BAE Stock
BAE Systems financial ratios help investors to determine whether BAE 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 BAE with respect to the benefits of owning BAE Systems security.