Alliance Data (Germany) Alpha and Beta Analysis
| LID Stock | EUR 61.78 1.64 2.73% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Alliance Data Systems. It also helps investors analyze the systematic and unsystematic risks associated with investing in Alliance Data over a specified time horizon. Remember, high Alliance Data'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 Alliance Data's market risk premium analysis include:
Beta 0.22 | Alpha 0.4 | Risk 3.13 | Sharpe Ratio 0.18 | Expected Return 0.56 |
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.
Alliance |
Alliance Data Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Alliance Data market risk premium is the additional return an investor will receive from holding Alliance Data 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 Alliance Data. 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 Alliance Data's performance over market.| α | 0.40 | β | 0.22 |
Alliance Data 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 Alliance Data's Buy-and-hold return. Our buy-and-hold chart shows how Alliance Data performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Alliance Data Market Price Analysis
Market price analysis indicators help investors to evaluate how Alliance Data stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Alliance Data shares will generate the highest return on investment. By understating and applying Alliance Data stock market price indicators, traders can identify Alliance Data position entry and exit signals to maximize returns.
Alliance Data Return and Market Media
The median price of Alliance Data for the period between Thu, Oct 24, 2024 and Wed, Jan 22, 2025 is 56.3 with a coefficient of variation of 9.6. The daily time series for the period is distributed with a sample standard deviation of 5.3, arithmetic mean of 55.24, and mean deviation of 4.22. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Alliance Data 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 Alliance or other stocks. Alpha measures the amount that position in Alliance Data Systems 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 Alliance Data 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, Alliance Data's short interest history, or implied volatility extrapolated from Alliance Data options trading.
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Additional Tools for Alliance Stock Analysis
When running Alliance Data's price analysis, check to measure Alliance Data'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 Alliance Data is operating at the current time. Most of Alliance Data's value examination focuses on studying past and present price action to predict the probability of Alliance Data's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alliance Data's price. Additionally, you may evaluate how the addition of Alliance Data to your portfolios can decrease your overall portfolio volatility.