Aurobindo Pharma (India) Alpha and Beta Analysis
| AUROPHARMA | 1,224 6.70 0.55% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Aurobindo Pharma Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Aurobindo Pharma over a specified time horizon. Remember, high Aurobindo Pharma'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 Aurobindo Pharma's market risk premium analysis include:
Beta 0.26 | Alpha (0.37) | Risk 1.22 | Sharpe Ratio (0.30) | Expected Return (0.37) |
Aurobindo Pharma Quarterly Cash And Equivalents |
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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.
Aurobindo |
Aurobindo Pharma Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Aurobindo Pharma market risk premium is the additional return an investor will receive from holding Aurobindo Pharma 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 Aurobindo Pharma. 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 Aurobindo Pharma's performance over market.| α | -0.37 | β | 0.26 |
Aurobindo Pharma 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 Aurobindo Pharma's Buy-and-hold return. Our buy-and-hold chart shows how Aurobindo Pharma performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Aurobindo Pharma Market Price Analysis
Market price analysis indicators help investors to evaluate how Aurobindo Pharma stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Aurobindo Pharma shares will generate the highest return on investment. By understating and applying Aurobindo Pharma stock market price indicators, traders can identify Aurobindo Pharma position entry and exit signals to maximize returns.
Aurobindo Pharma Return and Market Media
The median price of Aurobindo Pharma for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 1480.95 with a coefficient of variation of 6.61. The daily time series for the period is distributed with a sample standard deviation of 96.41, arithmetic mean of 1458.11, and mean deviation of 74.49. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | UBS starts Aurobindo Pharma stock with sell, sees low growth - Investing.com | 09/26/2024 |
2 | Aurobindo Pharma Ltd drops for fifth straight session - Business Standard | 11/11/2024 |
About Aurobindo Pharma 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 Aurobindo or other stocks. Alpha measures the amount that position in Aurobindo Pharma 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 Aurobindo Pharma 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, Aurobindo Pharma's short interest history, or implied volatility extrapolated from Aurobindo Pharma options trading.
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Other Information on Investing in Aurobindo Stock
Aurobindo Pharma financial ratios help investors to determine whether Aurobindo 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 Aurobindo with respect to the benefits of owning Aurobindo Pharma security.