Engie Energia (Chile) Alpha and Beta Analysis

ECL Stock  CLP 877.10  2.90  0.33%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Engie Energia Chile. It also helps investors analyze the systematic and unsystematic risks associated with investing in Engie Energia over a specified time horizon. Remember, high Engie Energia'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 Engie Energia's market risk premium analysis include:
Beta
0.0045
Alpha
0.0662
Risk
1.08
Sharpe Ratio
0.0209
Expected Return
0.0225
Please note that although Engie Energia alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Engie Energia did 0.07  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Engie Energia Chile stock's relative risk over its benchmark. Engie Energia Chile has a beta of . As returns on the market increase, Engie Energia's returns are expected to increase less than the market. However, during the bear market, the loss of holding Engie Energia is expected to be smaller as well. .
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.
  
Check out Engie Energia Backtesting, Engie Energia Valuation, Engie Energia Correlation, Engie Energia Hype Analysis, Engie Energia Volatility, Engie Energia History and analyze Engie Energia Performance.

Engie Energia Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Engie Energia market risk premium is the additional return an investor will receive from holding Engie Energia 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 Engie Energia. 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 Engie Energia's performance over market.
α0.07   β0

Engie Energia 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 Engie Energia's Buy-and-hold return. Our buy-and-hold chart shows how Engie Energia performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Engie Energia Market Price Analysis

Market price analysis indicators help investors to evaluate how Engie Energia stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Engie Energia shares will generate the highest return on investment. By understating and applying Engie Energia stock market price indicators, traders can identify Engie Energia position entry and exit signals to maximize returns.

Engie Energia Return and Market Media

The median price of Engie Energia for the period between Fri, Sep 20, 2024 and Thu, Dec 19, 2024 is 884.44 with a coefficient of variation of 1.47. The daily time series for the period is distributed with a sample standard deviation of 13.02, arithmetic mean of 882.95, and mean deviation of 9.86. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Engie Energia 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 Engie or other stocks. Alpha measures the amount that position in Engie Energia Chile 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 Engie Energia 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, Engie Energia's short interest history, or implied volatility extrapolated from Engie Energia options trading.

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Other Information on Investing in Engie Stock

Engie Energia financial ratios help investors to determine whether Engie 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 Engie with respect to the benefits of owning Engie Energia security.