Compass Group (UK) Alpha and Beta Analysis
| CPG Stock | 2,706 26.00 0.97% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Compass Group PLC. It also helps investors analyze the systematic and unsystematic risks associated with investing in Compass Group over a specified time horizon. Remember, high Compass Group'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 Compass Group's market risk premium analysis include:
Beta 0.27 | Alpha 0.15 | Risk 0.82 | Sharpe Ratio 0.24 | Expected Return 0.19 |
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.
Compass |
Compass Group Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Compass Group market risk premium is the additional return an investor will receive from holding Compass Group 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 Compass Group. 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 Compass Group's performance over market.| α | 0.15 | β | 0.27 |
Compass Group 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 Compass Group's Buy-and-hold return. Our buy-and-hold chart shows how Compass Group performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Compass Group Market Price Analysis
Market price analysis indicators help investors to evaluate how Compass Group stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Compass Group shares will generate the highest return on investment. By understating and applying Compass Group stock market price indicators, traders can identify Compass Group position entry and exit signals to maximize returns.
Compass Group Return and Market Media
The median price of Compass Group for the period between Fri, Aug 30, 2024 and Thu, Nov 28, 2024 is 2461.0 with a coefficient of variation of 3.49. The daily time series for the period is distributed with a sample standard deviation of 87.07, arithmetic mean of 2494.45, and mean deviation of 74.66. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Compass Group Stock Price Passes Above Two Hundred Day Moving Average of 2,261.35 - MarketBeat | 09/20/2024 |
2 | Compass Group Stock Price Crosses Above Two Hundred Day Moving Average of 2,272.66 - MarketBeat | 10/01/2024 |
3 | Compass Group Continues Share Buyback Strategy - MSN | 11/20/2024 |
About Compass Group 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 Compass or other stocks. Alpha measures the amount that position in Compass Group 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 Compass Group 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, Compass Group's short interest history, or implied volatility extrapolated from Compass Group options trading.
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Other Information on Investing in Compass Stock
Compass Group financial ratios help investors to determine whether Compass 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 Compass with respect to the benefits of owning Compass Group security.