CEAT (India) Alpha and Beta Analysis
| CEATLTD Stock | 2,974 41.10 1.40% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as CEAT Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in CEAT over a specified time horizon. Remember, high CEAT'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 CEAT's market risk premium analysis include:
Beta (0.31) | Alpha 0.11 | Risk 1.96 | Sharpe Ratio 0.0711 | Expected Return 0.14 |
CEAT 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.
CEAT |
CEAT Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. CEAT market risk premium is the additional return an investor will receive from holding CEAT 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 CEAT. 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 CEAT's performance over market.| α | 0.11 | β | -0.31 |
CEAT 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 CEAT's Buy-and-hold return. Our buy-and-hold chart shows how CEAT performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.CEAT Market Price Analysis
Market price analysis indicators help investors to evaluate how CEAT stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading CEAT shares will generate the highest return on investment. By understating and applying CEAT stock market price indicators, traders can identify CEAT position entry and exit signals to maximize returns.
CEAT Return and Market Media
The median price of CEAT for the period between Fri, Aug 30, 2024 and Thu, Nov 28, 2024 is 2873.7 with a coefficient of variation of 4.1. The daily time series for the period is distributed with a sample standard deviation of 118.82, arithmetic mean of 2898.45, and mean deviation of 95.05. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Ceat Limited Announces Cessation Change in Directorate - Marketscreener.com | 09/25/2024 |
2 | Ceat Share Price Drops After Q2 Profit Decline CFO Indicates Sustained Cost Pressures - NDTV Profit | 10/18/2024 |
3 | CEAT Share Price Today on 22-11-2024 CEAT share price are up by 1.66, Nifty up by 1.15 percent Stock Market News - Mint | 11/21/2024 |
About CEAT 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 CEAT or other stocks. Alpha measures the amount that position in CEAT Limited 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 CEAT 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, CEAT's short interest history, or implied volatility extrapolated from CEAT options trading.
Build Portfolio with CEAT
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
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Other Information on Investing in CEAT Stock
CEAT financial ratios help investors to determine whether CEAT 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 CEAT with respect to the benefits of owning CEAT security.