Galp Energia (Portugal) Alpha and Beta Analysis
| GALP Stock | EUR 15.78 0.06 0.38% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Galp Energia SGPS. It also helps investors analyze the systematic and unsystematic risks associated with investing in Galp Energia over a specified time horizon. Remember, high Galp Energia'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 Galp Energia's market risk premium analysis include:
Beta 0.11 | Alpha (0.34) | Risk 1.5 | Sharpe Ratio (0.21) | Expected Return (0.32) |
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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Galp Energia Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Galp Energia market risk premium is the additional return an investor will receive from holding Galp Energia 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 Galp Energia. 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 Galp Energia's performance over market.| α | -0.34 | β | 0.11 |
Galp Energia 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 Galp Energia's Buy-and-hold return. Our buy-and-hold chart shows how Galp Energia performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Galp Energia Market Price Analysis
Market price analysis indicators help investors to evaluate how Galp Energia stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Galp Energia shares will generate the highest return on investment. By understating and applying Galp Energia stock market price indicators, traders can identify Galp Energia position entry and exit signals to maximize returns.
Galp Energia Return and Market Media
The median price of Galp Energia for the period between Thu, Aug 29, 2024 and Wed, Nov 27, 2024 is 17.27 with a coefficient of variation of 6.14. The daily time series for the period is distributed with a sample standard deviation of 1.06, arithmetic mean of 17.18, and mean deviation of 0.79. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Galp Energia 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 Galp or other stocks. Alpha measures the amount that position in Galp Energia SGPS 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 Galp Energia 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, Galp Energia's short interest history, or implied volatility extrapolated from Galp Energia options trading.
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Additional Tools for Galp Stock Analysis
When running Galp Energia's price analysis, check to measure Galp Energia's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Galp Energia is operating at the current time. Most of Galp Energia's value examination focuses on studying past and present price action to predict the probability of Galp Energia's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Galp Energia's price. Additionally, you may evaluate how the addition of Galp Energia to your portfolios can decrease your overall portfolio volatility.