Pakistan Tobacco (Pakistan) Alpha and Beta Analysis
| PAKT Stock | 1,222 16.77 1.35% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Pakistan Tobacco. It also helps investors analyze the systematic and unsystematic risks associated with investing in Pakistan Tobacco over a specified time horizon. Remember, high Pakistan Tobacco'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 Pakistan Tobacco's market risk premium analysis include:
Beta (0.31) | Alpha 0.6 | Risk 2.76 | Sharpe Ratio 0.22 | Expected Return 0.61 |
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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Pakistan Tobacco Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Pakistan Tobacco market risk premium is the additional return an investor will receive from holding Pakistan Tobacco 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 Pakistan Tobacco. 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 Pakistan Tobacco's performance over market.| α | 0.60 | β | -0.31 |
Pakistan Tobacco 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 Pakistan Tobacco's Buy-and-hold return. Our buy-and-hold chart shows how Pakistan Tobacco performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Pakistan Tobacco Market Price Analysis
Market price analysis indicators help investors to evaluate how Pakistan Tobacco stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Pakistan Tobacco shares will generate the highest return on investment. By understating and applying Pakistan Tobacco stock market price indicators, traders can identify Pakistan Tobacco position entry and exit signals to maximize returns.
Pakistan Tobacco Return and Market Media
The median price of Pakistan Tobacco for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 982.03 with a coefficient of variation of 17.31. The daily time series for the period is distributed with a sample standard deviation of 177.9, arithmetic mean of 1028.05, and mean deviation of 164.15. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Pakistan Tobacco 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 Pakistan or other stocks. Alpha measures the amount that position in Pakistan Tobacco 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 Pakistan Tobacco 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, Pakistan Tobacco's short interest history, or implied volatility extrapolated from Pakistan Tobacco options trading.
Build Portfolio with Pakistan Tobacco
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Other Information on Investing in Pakistan Stock
Pakistan Tobacco financial ratios help investors to determine whether Pakistan 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 Pakistan with respect to the benefits of owning Pakistan Tobacco security.