Cincinnati Financial (Germany) Alpha and Beta Analysis
| CCJ Stock | EUR 150.95 1.15 0.76% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Cincinnati Financial. It also helps investors analyze the systematic and unsystematic risks associated with investing in Cincinnati Financial over a specified time horizon. Remember, high Cincinnati Financial'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 Cincinnati Financial's market risk premium analysis include:
Beta 1.25 | Alpha 0.17 | Risk 1.63 | Sharpe Ratio 0.2 | Expected Return 0.33 |
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.
Cincinnati |
Cincinnati Financial Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Cincinnati Financial market risk premium is the additional return an investor will receive from holding Cincinnati Financial 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 Cincinnati Financial. 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 Cincinnati Financial's performance over market.| α | 0.17 | β | 1.25 |
Cincinnati Financial 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 Cincinnati Financial's Buy-and-hold return. Our buy-and-hold chart shows how Cincinnati Financial performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Cincinnati Financial Market Price Analysis
Market price analysis indicators help investors to evaluate how Cincinnati Financial stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cincinnati Financial shares will generate the highest return on investment. By understating and applying Cincinnati Financial stock market price indicators, traders can identify Cincinnati Financial position entry and exit signals to maximize returns.
Cincinnati Financial Return and Market Media
The median price of Cincinnati Financial for the period between Wed, Sep 4, 2024 and Tue, Dec 3, 2024 is 126.65 with a coefficient of variation of 7.73. The daily time series for the period is distributed with a sample standard deviation of 10.08, arithmetic mean of 130.37, and mean deviation of 8.31. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Cincinnati Financial 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 Cincinnati or other stocks. Alpha measures the amount that position in Cincinnati Financial 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 Cincinnati Financial 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, Cincinnati Financial's short interest history, or implied volatility extrapolated from Cincinnati Financial options trading.
Build Portfolio with Cincinnati Financial
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
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Additional Information and Resources on Investing in Cincinnati Stock
When determining whether Cincinnati Financial is a strong investment it is important to analyze Cincinnati Financial'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 Cincinnati Financial's future performance. For an informed investment choice regarding Cincinnati Stock, refer to the following important reports:Check out Cincinnati Financial Backtesting, Cincinnati Financial Valuation, Cincinnati Financial Correlation, Cincinnati Financial Hype Analysis, Cincinnati Financial Volatility, Cincinnati Financial History and analyze Cincinnati Financial Performance. For more detail on how to invest in Cincinnati Stock please use our How to Invest in Cincinnati Financial guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Cincinnati Financial 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.