Avis Budget (UK) Alpha and Beta Analysis
| 0HK4 Stock | 99.69 2.11 2.07% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Avis Budget Group. It also helps investors analyze the systematic and unsystematic risks associated with investing in Avis Budget over a specified time horizon. Remember, high Avis Budget'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 Avis Budget's market risk premium analysis include:
Beta (0.42) | Alpha 0.69 | Risk 3.6 | Sharpe Ratio 0.15 | Expected Return 0.53 |
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.
Avis |
Avis Budget Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Avis Budget market risk premium is the additional return an investor will receive from holding Avis Budget 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 Avis Budget. 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 Avis Budget's performance over market.| α | 0.69 | β | -0.42 |
Avis Budget 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 Avis Budget's Buy-and-hold return. Our buy-and-hold chart shows how Avis Budget performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Avis Budget Market Price Analysis
Market price analysis indicators help investors to evaluate how Avis Budget stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Avis Budget shares will generate the highest return on investment. By understating and applying Avis Budget stock market price indicators, traders can identify Avis Budget position entry and exit signals to maximize returns.
Avis Budget Return and Market Media
The median price of Avis Budget for the period between Fri, Sep 13, 2024 and Thu, Dec 12, 2024 is 88.05 with a coefficient of variation of 11.31. The daily time series for the period is distributed with a sample standard deviation of 10.27, arithmetic mean of 90.83, and mean deviation of 8.69. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Trading With Integrated Risk Controls - Stock Traders Daily | 09/27/2024 |
2 | Why Avis Budget Stock Soared 17 percent After Earnings - The Motley Fool | 11/01/2024 |
3 | Avis Budget Group Shares Gap Down - Should You Sell - MarketBeat | 11/18/2024 |
4 | Morgan Stanley Cautions on Car Rental Stocks HTZ and CAR Ratings Adjusted - GuruFocus.com | 11/22/2024 |
About Avis Budget 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 Avis or other stocks. Alpha measures the amount that position in Avis Budget Group 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 Avis Budget 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, Avis Budget's short interest history, or implied volatility extrapolated from Avis Budget options trading.
Build Portfolio with Avis Budget
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Additional Tools for Avis Stock Analysis
When running Avis Budget's price analysis, check to measure Avis Budget'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 Avis Budget is operating at the current time. Most of Avis Budget's value examination focuses on studying past and present price action to predict the probability of Avis Budget's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Avis Budget's price. Additionally, you may evaluate how the addition of Avis Budget to your portfolios can decrease your overall portfolio volatility.