Goodyear Tire (Germany) Alpha and Beta Analysis
| GTR Stock | EUR 10.00 0.43 4.49% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as The Goodyear Tire. It also helps investors analyze the systematic and unsystematic risks associated with investing in Goodyear Tire over a specified time horizon. Remember, high Goodyear Tire'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 Goodyear Tire's market risk premium analysis include:
Beta 1.84 | Alpha 0.1 | Risk 3.21 | Sharpe Ratio 0.12 | Expected Return 0.38 |
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.
Goodyear |
Goodyear Tire Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Goodyear Tire market risk premium is the additional return an investor will receive from holding Goodyear Tire 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 Goodyear Tire. 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 Goodyear Tire's performance over market.| α | 0.10 | β | 1.84 |
Goodyear Tire 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 Goodyear Tire's Buy-and-hold return. Our buy-and-hold chart shows how Goodyear Tire performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Goodyear Tire Market Price Analysis
Market price analysis indicators help investors to evaluate how Goodyear Tire stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Goodyear Tire shares will generate the highest return on investment. By understating and applying Goodyear Tire stock market price indicators, traders can identify Goodyear Tire position entry and exit signals to maximize returns.
Goodyear Tire Return and Market Media
The median price of Goodyear Tire for the period between Thu, Aug 29, 2024 and Wed, Nov 27, 2024 is 7.67 with a coefficient of variation of 8.43. The daily time series for the period is distributed with a sample standard deviation of 0.66, arithmetic mean of 7.82, and mean deviation of 0.51. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Goodyear Tire 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 Goodyear or other stocks. Alpha measures the amount that position in Goodyear Tire 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 Goodyear Tire 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, Goodyear Tire's short interest history, or implied volatility extrapolated from Goodyear Tire options trading.
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Other Information on Investing in Goodyear Stock
Goodyear Tire financial ratios help investors to determine whether Goodyear 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 Goodyear with respect to the benefits of owning Goodyear Tire security.