Hormel Foods (Germany) Alpha and Beta Analysis
| HO7 Stock | EUR 31.28 0.48 1.56% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Hormel Foods. It also helps investors analyze the systematic and unsystematic risks associated with investing in Hormel Foods over a specified time horizon. Remember, high Hormel Foods' 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 Hormel Foods' market risk premium analysis include:
Beta 0.0333 | Alpha 0.1 | Risk 1.31 | Sharpe Ratio 0.13 | Expected Return 0.17 |
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.
Hormel |
Hormel Foods Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Hormel Foods market risk premium is the additional return an investor will receive from holding Hormel Foods 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 Hormel Foods. 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 Hormel Foods' performance over market.| α | 0.10 | β | 0.03 |
Hormel Foods 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 Hormel Foods' Buy-and-hold return. Our buy-and-hold chart shows how Hormel Foods performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Hormel Foods Market Price Analysis
Market price analysis indicators help investors to evaluate how Hormel Foods stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Hormel Foods shares will generate the highest return on investment. By understating and applying Hormel Foods stock market price indicators, traders can identify Hormel Foods position entry and exit signals to maximize returns.
Hormel Foods Return and Market Media
The median price of Hormel Foods for the period between Thu, Sep 12, 2024 and Wed, Dec 11, 2024 is 28.51 with a coefficient of variation of 2.97. The daily time series for the period is distributed with a sample standard deviation of 0.85, arithmetic mean of 28.79, and mean deviation of 0.64. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Hormel Foods 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 Hormel or other stocks. Alpha measures the amount that position in Hormel Foods 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 Hormel Foods 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, Hormel Foods' short interest history, or implied volatility extrapolated from Hormel Foods options trading.
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Additional Information and Resources on Investing in Hormel Stock
When determining whether Hormel Foods is a strong investment it is important to analyze Hormel Foods' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Hormel Foods' future performance. For an informed investment choice regarding Hormel Stock, refer to the following important reports:Check out Hormel Foods Backtesting, Hormel Foods Valuation, Hormel Foods Correlation, Hormel Foods Hype Analysis, Hormel Foods Volatility, Hormel Foods History and analyze Hormel Foods Performance. For more detail on how to invest in Hormel Stock please use our How to Invest in Hormel Foods guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Hormel Foods 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.