Gudang Garam (Indonesia) Alpha and Beta Analysis
| GGRM Stock | IDR 13,025 175.00 1.33% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Gudang Garam Tbk. It also helps investors analyze the systematic and unsystematic risks associated with investing in Gudang Garam over a specified time horizon. Remember, high Gudang Garam'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 Gudang Garam's market risk premium analysis include:
Beta 0.16 | Alpha (0.35) | Risk 1.43 | Sharpe Ratio (0.21) | Expected Return (0.30) |
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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Gudang Garam Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Gudang Garam market risk premium is the additional return an investor will receive from holding Gudang Garam 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 Gudang Garam. 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 Gudang Garam's performance over market.| α | -0.35 | β | 0.16 |
Gudang Garam 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 Gudang Garam's Buy-and-hold return. Our buy-and-hold chart shows how Gudang Garam performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Gudang Garam Market Price Analysis
Market price analysis indicators help investors to evaluate how Gudang Garam stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Gudang Garam shares will generate the highest return on investment. By understating and applying Gudang Garam stock market price indicators, traders can identify Gudang Garam position entry and exit signals to maximize returns.
Gudang Garam Return and Market Media
The median price of Gudang Garam for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 15700.0 with a coefficient of variation of 7.6. The daily time series for the period is distributed with a sample standard deviation of 1153.46, arithmetic mean of 15178.41, and mean deviation of 994.59. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Gudang Garam 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 Gudang or other stocks. Alpha measures the amount that position in Gudang Garam Tbk 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 Gudang Garam 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, Gudang Garam's short interest history, or implied volatility extrapolated from Gudang Garam options trading.
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Other Information on Investing in Gudang Stock
Gudang Garam financial ratios help investors to determine whether Gudang 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 Gudang with respect to the benefits of owning Gudang Garam security.