NMDC Steel (India) Alpha and Beta Analysis
| NSLNISP Stock | 45.98 0.01 0.02% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as NMDC Steel Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in NMDC Steel over a specified time horizon. Remember, high NMDC Steel'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 NMDC Steel's market risk premium analysis include:
Beta 0.35 | Alpha (0.30) | Risk 1.99 | Sharpe Ratio (0.11) | Expected Return (0.21) |
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.
NMDC |
NMDC Steel Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. NMDC Steel market risk premium is the additional return an investor will receive from holding NMDC Steel 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 NMDC Steel. 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 NMDC Steel's performance over market.| α | -0.3 | β | 0.35 |
NMDC Steel 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 NMDC Steel's Buy-and-hold return. Our buy-and-hold chart shows how NMDC Steel performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.NMDC Steel Market Price Analysis
Market price analysis indicators help investors to evaluate how NMDC Steel stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading NMDC Steel shares will generate the highest return on investment. By understating and applying NMDC Steel stock market price indicators, traders can identify NMDC Steel position entry and exit signals to maximize returns.
NMDC Steel Return and Market Media
The median price of NMDC Steel for the period between Sat, Aug 31, 2024 and Fri, Nov 29, 2024 is 50.58 with a coefficient of variation of 7.23. The daily time series for the period is distributed with a sample standard deviation of 3.59, arithmetic mean of 49.58, and mean deviation of 3.17. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | NMDC Steel shares drop 5 percent as loss widens to Rs 595 cr in Q2, margins dip - Business Standard | 11/12/2024 |
About NMDC Steel 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 NMDC or other stocks. Alpha measures the amount that position in NMDC Steel Limited 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 NMDC Steel 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, NMDC Steel's short interest history, or implied volatility extrapolated from NMDC Steel options trading.
Build Portfolio with NMDC Steel
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Additional Tools for NMDC Stock Analysis
When running NMDC Steel's price analysis, check to measure NMDC Steel'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 NMDC Steel is operating at the current time. Most of NMDC Steel's value examination focuses on studying past and present price action to predict the probability of NMDC Steel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NMDC Steel's price. Additionally, you may evaluate how the addition of NMDC Steel to your portfolios can decrease your overall portfolio volatility.