Canadian Western Bank Stock Alpha and Beta Analysis
| CWB Stock | CAD 59.72 0.19 0.32% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Canadian Western Bank. It also helps investors analyze the systematic and unsystematic risks associated with investing in Canadian Western over a specified time horizon. Remember, high Canadian Western'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 Canadian Western's market risk premium analysis include:
Beta 0.0537 | Alpha 0.29 | Risk 0.81 | Sharpe Ratio 0.27 | Expected Return 0.22 |
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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.
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Canadian Western Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Canadian Western market risk premium is the additional return an investor will receive from holding Canadian Western 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 Canadian Western. 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 Canadian Western's performance over market.| α | 0.29 | β | 0.05 |
Canadian Western 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 Canadian Western's Buy-and-hold return. Our buy-and-hold chart shows how Canadian Western performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Canadian Western Market Price Analysis
Market price analysis indicators help investors to evaluate how Canadian Western stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Canadian Western shares will generate the highest return on investment. By understating and applying Canadian Western stock market price indicators, traders can identify Canadian Western position entry and exit signals to maximize returns.
Canadian Western Return and Market Media
The median price of Canadian Western for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 54.74 with a coefficient of variation of 5.05. The daily time series for the period is distributed with a sample standard deviation of 2.78, arithmetic mean of 54.99, and mean deviation of 2.4. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Canadian Western Bank downgraded to Market Perform from Outperform at Raymond James - TipRanks | 09/04/2024 |
2 | Wall Street SWOT Canadian Western Bank stock rides wave of domestic banking strength - Investing.com | 09/27/2024 |
3 | Canadian Western Bank Stock Price Passes Above 200-Day Moving Average - Heres Why - MarketBeat | 10/25/2024 |
About Canadian Western 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 Canadian or other stocks. Alpha measures the amount that position in Canadian Western Bank 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.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0613 | 0.0549 | 0.0494 | 0.0519 | Price To Sales Ratio | 2.01 | 2.37 | 2.73 | 4.26 |
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 Canadian Western 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, Canadian Western's short interest history, or implied volatility extrapolated from Canadian Western options trading.
Build Portfolio with Canadian Western
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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Other Information on Investing in Canadian Stock
Canadian Western financial ratios help investors to determine whether Canadian 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 Canadian with respect to the benefits of owning Canadian Western security.