Applied Materials (Germany) Alpha and Beta Analysis
| AP2 Stock | EUR 158.66 0.50 0.31% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Applied Materials. It also helps investors analyze the systematic and unsystematic risks associated with investing in Applied Materials over a specified time horizon. Remember, high Applied Materials' 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 Applied Materials' market risk premium analysis include:
Beta (0.18) | Alpha (0.20) | Risk 2.51 | Sharpe Ratio (0.05) | Expected Return (0.13) |
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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Applied Materials Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Applied Materials market risk premium is the additional return an investor will receive from holding Applied Materials 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 Applied Materials. 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 Applied Materials' performance over market.| α | -0.2 | β | -0.18 |
Applied Materials 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 Applied Materials' Buy-and-hold return. Our buy-and-hold chart shows how Applied Materials performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Applied Materials Market Price Analysis
Market price analysis indicators help investors to evaluate how Applied Materials stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Applied Materials shares will generate the highest return on investment. By understating and applying Applied Materials stock market price indicators, traders can identify Applied Materials position entry and exit signals to maximize returns.
Applied Materials Return and Market Media
The median price of Applied Materials for the period between Sat, Aug 24, 2024 and Fri, Nov 22, 2024 is 173.56 with a coefficient of variation of 4.49. The daily time series for the period is distributed with a sample standard deviation of 7.77, arithmetic mean of 173.11, and mean deviation of 6.12. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Applied Materials 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 Applied or other stocks. Alpha measures the amount that position in Applied Materials 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 Applied Materials 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, Applied Materials' short interest history, or implied volatility extrapolated from Applied Materials options trading.
Build Portfolio with Applied Materials
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Additional Information and Resources on Investing in Applied Stock
When determining whether Applied Materials is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Applied Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Applied Materials Stock. Highlighted below are key reports to facilitate an investment decision about Applied Materials Stock:Check out Applied Materials Backtesting, Applied Materials Valuation, Applied Materials Correlation, Applied Materials Hype Analysis, Applied Materials Volatility, Applied Materials History and analyze Applied Materials Performance. For more detail on how to invest in Applied Stock please use our How to Invest in Applied Materials guide.You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Applied Materials 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.