MICROCHIP TECH (Germany) Alpha and Beta Analysis

MCP Stock  EUR 66.14  1.02  1.57%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as MICROCHIP TECH. It also helps investors analyze the systematic and unsystematic risks associated with investing in MICROCHIP TECH over a specified time horizon. Remember, high MICROCHIP TECH'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 MICROCHIP TECH's market risk premium analysis include:
Beta
0.59
Alpha
0.49
Risk
2.8
Sharpe Ratio
0.26
Expected Return
0.71
Please note that although MICROCHIP TECH 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, MICROCHIP TECH did 0.49  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 MICROCHIP TECH stock's relative risk over its benchmark. MICROCHIP TECH has a beta of 0.58  . As returns on the market increase, MICROCHIP TECH's returns are expected to increase less than the market. However, during the bear market, the loss of holding MICROCHIP TECH 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 MICROCHIP TECH Analysis, MICROCHIP TECH Valuation, MICROCHIP TECH Correlation, MICROCHIP TECH Hype Analysis, MICROCHIP TECH Volatility, MICROCHIP TECH Price History and analyze MICROCHIP TECH Performance.

MICROCHIP TECH Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. MICROCHIP TECH market risk premium is the additional return an investor will receive from holding MICROCHIP TECH 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 MICROCHIP TECH. 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 MICROCHIP TECH's performance over market.
α0.49   β0.58

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

MICROCHIP TECH Market Price Analysis

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

MICROCHIP TECH Return and Market Media

The median price of MICROCHIP TECH for the period between Sun, Nov 23, 2025 and Sat, Feb 21, 2026 is 62.08 with a coefficient of variation of 13.58. The daily time series for the period is distributed with a sample standard deviation of 7.88, arithmetic mean of 58.02, and mean deviation of 6.63. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
1
Truist Cautious on Microchip Technology After Q3 Beat But Below-Consensus Q4 Guidance - Yahoo Finance
11/25/2025
2
Microchip Technology Reassessing Valuation After Upgraded Guidance and Analyst Targets Meet Softer Chip Sentiment - Yahoo Finance
12/19/2025
3
Microchip Technology raises Q3 revenue forecast on strong bookings - Reuters
01/05/2026
4
Microchip Technology Stock Spikes 15 percent as Traders Fear Pullback - TipRanks
01/08/2026
5
Piper Sandler raises Microchip Technology stock price target to 85 - Investing.com
01/15/2026
6
QRG Capital Management Inc. Sells 27,793 Shares of Microchip Technology Incorporated MCHP - MarketBeat
01/19/2026
7
Microchip Technology Stock Trades Up, Here Is Why - Yahoo Finance
01/28/2026
8
Heres Why Microchip Stock Could Deliver 15 percent Returns in 2026 - TIKR.com
02/02/2026
9
Cantor Fitzgerald reiterates Overweight rating on Microchip Technology stock - Investing.com
02/06/2026
10
Microchip Technology Stock Rating Upgraded by Argus - MarketBeat
02/10/2026
11
If You Invested 1000 in Microchip Technology a Decade Ago, This is How Much Itd Be Worth Now - Yahoo Finance
02/16/2026

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

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Other Information on Investing in MICROCHIP Stock

MICROCHIP TECH financial ratios help investors to determine whether MICROCHIP 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 MICROCHIP with respect to the benefits of owning MICROCHIP TECH security.