Coca Cola (Germany) Alpha and Beta Analysis
| CCC3 Stock | EUR 60.95 0.45 0.73% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as The Coca Cola. It also helps investors analyze the systematic and unsystematic risks associated with investing in Coca Cola over a specified time horizon. Remember, high Coca Cola'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 Coca Cola's market risk premium analysis include:
Beta 0.22 | Alpha (0.08) | Risk 0.9 | Sharpe Ratio (0.08) | Expected Return (0.07) |
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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Coca Cola Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Coca Cola market risk premium is the additional return an investor will receive from holding Coca Cola 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 Coca Cola. 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 Coca Cola's performance over market.| α | -0.08 | β | 0.22 |
Coca Cola 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 Coca Cola's Buy-and-hold return. Our buy-and-hold chart shows how Coca Cola performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Coca Cola Market Price Analysis
Market price analysis indicators help investors to evaluate how Coca Cola stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Coca Cola shares will generate the highest return on investment. By understating and applying Coca Cola stock market price indicators, traders can identify Coca Cola position entry and exit signals to maximize returns.
Coca Cola Return and Market Media
The median price of Coca Cola for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 63.63 with a coefficient of variation of 3.34. The daily time series for the period is distributed with a sample standard deviation of 2.1, arithmetic mean of 62.74, and mean deviation of 1.84. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Coca Cola 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 Coca or other stocks. Alpha measures the amount that position in Coca Cola 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 Coca Cola 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, Coca Cola's short interest history, or implied volatility extrapolated from Coca Cola options trading.
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Additional Information and Resources on Investing in Coca Stock
When determining whether Coca Cola offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Coca Cola'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 The Coca Cola Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Coca Cola Stock:Check out Coca Cola Backtesting, Coca Cola Valuation, Coca Cola Correlation, Coca Cola Hype Analysis, Coca Cola Volatility, Coca Cola History and analyze Coca Cola Performance. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Coca Cola 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.