Deutsche Bank (Germany) Alpha and Beta Analysis

DBK Stock  EUR 15.52  0.23  1.46%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Deutsche Bank Aktiengesellschaft. It also helps investors analyze the systematic and unsystematic risks associated with investing in Deutsche Bank over a specified time horizon. Remember, high Deutsche Bank'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 Deutsche Bank's market risk premium analysis include:
Beta
0.83
Alpha
0.0207
Risk
1.63
Sharpe Ratio
0.0608
Expected Return
0.0989
Please note that although Deutsche Bank alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Deutsche Bank did 0.02  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Deutsche Bank Aktiengesellschaft stock's relative risk over its benchmark. Deutsche Bank Aktien has a beta of 0.83  . As returns on the market increase, Deutsche Bank's returns are expected to increase less than the market. However, during the bear market, the loss of holding Deutsche Bank is expected to be smaller as well. .
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.
  
Check out Deutsche Bank Backtesting, Deutsche Bank Valuation, Deutsche Bank Correlation, Deutsche Bank Hype Analysis, Deutsche Bank Volatility, Deutsche Bank History and analyze Deutsche Bank Performance.

Deutsche Bank Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Deutsche Bank market risk premium is the additional return an investor will receive from holding Deutsche Bank 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 Deutsche Bank. 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 Deutsche Bank's performance over market.
α0.02   β0.83

Deutsche Bank 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 Deutsche Bank's Buy-and-hold return. Our buy-and-hold chart shows how Deutsche Bank performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Deutsche Bank Market Price Analysis

Market price analysis indicators help investors to evaluate how Deutsche Bank stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Deutsche Bank shares will generate the highest return on investment. By understating and applying Deutsche Bank stock market price indicators, traders can identify Deutsche Bank position entry and exit signals to maximize returns.

Deutsche Bank Return and Market Media

The median price of Deutsche Bank for the period between Thu, Aug 29, 2024 and Wed, Nov 27, 2024 is 15.57 with a coefficient of variation of 3.77. The daily time series for the period is distributed with a sample standard deviation of 0.58, arithmetic mean of 15.47, and mean deviation of 0.49. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Deutsche Bank 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 Deutsche or other stocks. Alpha measures the amount that position in Deutsche Bank Aktien 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 Deutsche Bank 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, Deutsche Bank's short interest history, or implied volatility extrapolated from Deutsche Bank options trading.

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Other Information on Investing in Deutsche Stock

Deutsche Bank financial ratios help investors to determine whether Deutsche 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 Deutsche with respect to the benefits of owning Deutsche Bank security.