GlaxoSmithKline PLC (UK) Alpha and Beta Analysis
| GSK Stock | 1,340 3.50 0.26% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as GlaxoSmithKline PLC. It also helps investors analyze the systematic and unsystematic risks associated with investing in GlaxoSmithKline PLC over a specified time horizon. Remember, high GlaxoSmithKline PLC'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 GlaxoSmithKline PLC's market risk premium analysis include:
Beta 0.26 | Alpha (0.33) | Risk 1.23 | Sharpe Ratio (0.24) | 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.
GlaxoSmithKline |
GlaxoSmithKline PLC Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. GlaxoSmithKline PLC market risk premium is the additional return an investor will receive from holding GlaxoSmithKline PLC 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 GlaxoSmithKline PLC. 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 GlaxoSmithKline PLC's performance over market.| α | -0.33 | β | 0.26 |
GlaxoSmithKline PLC 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 GlaxoSmithKline PLC's Buy-and-hold return. Our buy-and-hold chart shows how GlaxoSmithKline PLC performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.GlaxoSmithKline PLC Market Price Analysis
Market price analysis indicators help investors to evaluate how GlaxoSmithKline PLC stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading GlaxoSmithKline PLC shares will generate the highest return on investment. By understating and applying GlaxoSmithKline PLC stock market price indicators, traders can identify GlaxoSmithKline PLC position entry and exit signals to maximize returns.
GlaxoSmithKline PLC Return and Market Media
The median price of GlaxoSmithKline PLC for the period between Sat, Aug 31, 2024 and Fri, Nov 29, 2024 is 1459.74 with a coefficient of variation of 7.29. The daily time series for the period is distributed with a sample standard deviation of 106.9, arithmetic mean of 1467.36, and mean deviation of 88.05. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | GSK CEO Is Trying to Move Past Overhang of Zantac Litigation on Shares - Bloomberg | 09/25/2024 |
2 | Pfizer Wins London Court Battle, GSKs Respiratory Syncytial Virus Vaccine Patents Invalidated - Yahoo Finance | 10/07/2024 |
| GlaxoSmithKline PLC dividend paid on 10th of October 2024 | 10/10/2024 |
3 | This Dividend Stock With a 4 percent Yield Is a Buy After Some Positive News - Morningstar | 10/21/2024 |
4 | GSK Drug for Rare Disease-Related Itch Meets Goal in Phase III Study - Zacks Investment Research | 11/20/2024 |
About GlaxoSmithKline PLC 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 GlaxoSmithKline or other stocks. Alpha measures the amount that position in GlaxoSmithKline PLC 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 GlaxoSmithKline PLC 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, GlaxoSmithKline PLC's short interest history, or implied volatility extrapolated from GlaxoSmithKline PLC options trading.
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Other Information on Investing in GlaxoSmithKline Stock
GlaxoSmithKline PLC financial ratios help investors to determine whether GlaxoSmithKline 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 GlaxoSmithKline with respect to the benefits of owning GlaxoSmithKline PLC security.