Meta Platforms (Germany) Alpha and Beta Analysis
| FB2A Stock | EUR 537.70 0.60 0.11% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Meta Platforms. It also helps investors analyze the systematic and unsystematic risks associated with investing in Meta Platforms over a specified time horizon. Remember, high Meta Platforms' 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 Meta Platforms' market risk premium analysis include:
Beta 0.0349 | Alpha 0.17 | Risk 1.59 | Sharpe Ratio 0.15 | Expected Return 0.24 |
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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Meta Platforms Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Meta Platforms market risk premium is the additional return an investor will receive from holding Meta Platforms 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 Meta Platforms. 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 Meta Platforms' performance over market.| α | 0.17 | β | 0.03 |
Meta Platforms 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 Meta Platforms' Buy-and-hold return. Our buy-and-hold chart shows how Meta Platforms performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Meta Platforms Market Price Analysis
Market price analysis indicators help investors to evaluate how Meta Platforms stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Meta Platforms shares will generate the highest return on investment. By understating and applying Meta Platforms stock market price indicators, traders can identify Meta Platforms position entry and exit signals to maximize returns.
Meta Platforms Return and Market Media
The median price of Meta Platforms for the period between Sun, Aug 25, 2024 and Sat, Nov 23, 2024 is 523.9 with a coefficient of variation of 6.12. The daily time series for the period is distributed with a sample standard deviation of 31.3, arithmetic mean of 511.01, and mean deviation of 27.18. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Meta Platforms 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 Meta or other stocks. Alpha measures the amount that position in Meta Platforms 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 Meta Platforms 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, Meta Platforms' short interest history, or implied volatility extrapolated from Meta Platforms options trading.
Build Portfolio with Meta Platforms
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Additional Information and Resources on Investing in Meta Stock
When determining whether Meta Platforms offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Meta Platforms' 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 Meta Platforms Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Meta Platforms Stock:Check out Meta Platforms Backtesting, Meta Platforms Valuation, Meta Platforms Correlation, Meta Platforms Hype Analysis, Meta Platforms Volatility, Meta Platforms History and analyze Meta Platforms Performance. For information on how to trade Meta Stock refer to our How to Trade Meta Stock guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Meta Platforms 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.