CVS Health (UK) Alpha and Beta Analysis
| 0HRS Stock | 60.01 2.74 4.78% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as CVS Health Corp. It also helps investors analyze the systematic and unsystematic risks associated with investing in CVS Health over a specified time horizon. Remember, high CVS Health'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 CVS Health's market risk premium analysis include:
Beta 1.51 | Alpha (0.18) | Risk 2.73 | Sharpe Ratio 0.0505 | Expected Return 0.14 |
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.
CVS |
CVS Health Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. CVS Health market risk premium is the additional return an investor will receive from holding CVS Health 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 CVS Health. 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 CVS Health's performance over market.| α | -0.18 | β | 1.51 |
CVS Health 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 CVS Health's Buy-and-hold return. Our buy-and-hold chart shows how CVS Health performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.CVS Health Market Price Analysis
Market price analysis indicators help investors to evaluate how CVS Health stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading CVS Health shares will generate the highest return on investment. By understating and applying CVS Health stock market price indicators, traders can identify CVS Health position entry and exit signals to maximize returns.
CVS Health Return and Market Media
The median price of CVS Health for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 57.09 with a coefficient of variation of 5.71. The daily time series for the period is distributed with a sample standard deviation of 3.34, arithmetic mean of 58.4, and mean deviation of 2.62. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Is CVS Health Corporation The Best Beaten Down Dividend Stock to Invest in Now - Insider Monkey | 09/05/2024 |
2 | Jim Cramer Does Not Like CVS Health Heres Why - Yahoo Finance | 09/23/2024 |
3 | Should You Pick CVS Stock At 65 - Forbes | 10/02/2024 |
4 | CVS Earnings Full Extent of Weakness Seen in Aetna Operations - Morningstar | 11/06/2024 |
5 | Bear of the Day CVS Health - Yahoo Finance | 11/20/2024 |
About CVS Health 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 CVS or other stocks. Alpha measures the amount that position in CVS Health Corp 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 CVS Health 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, CVS Health's short interest history, or implied volatility extrapolated from CVS Health options trading.
Build Portfolio with CVS Health
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Additional Tools for CVS Stock Analysis
When running CVS Health's price analysis, check to measure CVS Health'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 CVS Health is operating at the current time. Most of CVS Health's value examination focuses on studying past and present price action to predict the probability of CVS Health's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CVS Health's price. Additionally, you may evaluate how the addition of CVS Health to your portfolios can decrease your overall portfolio volatility.