SOFI TECHNOLOGIES (Germany) Alpha and Beta Analysis
| 6B0 Stock | 15.03 0.65 4.52% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as SOFI TECHNOLOGIES. It also helps investors analyze the systematic and unsystematic risks associated with investing in SOFI TECHNOLOGIES over a specified time horizon. Remember, high SOFI TECHNOLOGIES'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 SOFI TECHNOLOGIES's market risk premium analysis include:
Beta (0.08) | Alpha 1.33 | Risk 3.91 | Sharpe Ratio 0.34 | Expected Return 1.34 |
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.
SOFI |
SOFI TECHNOLOGIES Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. SOFI TECHNOLOGIES market risk premium is the additional return an investor will receive from holding SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES. 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 SOFI TECHNOLOGIES's performance over market.| α | 1.33 | β | -0.08 |
SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES's Buy-and-hold return. Our buy-and-hold chart shows how SOFI TECHNOLOGIES performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.SOFI TECHNOLOGIES Market Price Analysis
Market price analysis indicators help investors to evaluate how SOFI TECHNOLOGIES stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading SOFI TECHNOLOGIES shares will generate the highest return on investment. By understating and applying SOFI TECHNOLOGIES stock market price indicators, traders can identify SOFI TECHNOLOGIES position entry and exit signals to maximize returns.
SOFI TECHNOLOGIES Return and Market Media
The median price of SOFI TECHNOLOGIES for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 7.82 with a coefficient of variation of 27.08. The daily time series for the period is distributed with a sample standard deviation of 2.42, arithmetic mean of 8.94, and mean deviation of 2.05. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About SOFI TECHNOLOGIES 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 SOFI or other stocks. Alpha measures the amount that position in SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES 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, SOFI TECHNOLOGIES's short interest history, or implied volatility extrapolated from SOFI TECHNOLOGIES options trading.
Build Portfolio with SOFI TECHNOLOGIES
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Additional Information and Resources on Investing in SOFI Stock
When determining whether SOFI TECHNOLOGIES offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of SOFI TECHNOLOGIES's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sofi Technologies Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sofi Technologies Stock:Check out SOFI TECHNOLOGIES Backtesting, SOFI TECHNOLOGIES Valuation, SOFI TECHNOLOGIES Correlation, SOFI TECHNOLOGIES Hype Analysis, SOFI TECHNOLOGIES Volatility, SOFI TECHNOLOGIES History and analyze SOFI TECHNOLOGIES Performance. For more detail on how to invest in SOFI Stock please use our How to Invest in SOFI TECHNOLOGIES guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
SOFI TECHNOLOGIES technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.