Johnson Matthey (UK) Alpha and Beta Analysis
| JMAT Stock | 1,359 29.00 2.18% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Johnson Matthey PLC. It also helps investors analyze the systematic and unsystematic risks associated with investing in Johnson Matthey over a specified time horizon. Remember, high Johnson Matthey'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 Johnson Matthey's market risk premium analysis include:
Beta (0.37) | Alpha (0.22) | Risk 2.22 | Sharpe Ratio (0.11) | 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.
Johnson |
Johnson Matthey Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Johnson Matthey market risk premium is the additional return an investor will receive from holding Johnson Matthey 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 Johnson Matthey. 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 Johnson Matthey's performance over market.| α | -0.22 | β | -0.37 |
Johnson Matthey 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 Johnson Matthey's Buy-and-hold return. Our buy-and-hold chart shows how Johnson Matthey performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Johnson Matthey Market Price Analysis
Market price analysis indicators help investors to evaluate how Johnson Matthey stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Johnson Matthey shares will generate the highest return on investment. By understating and applying Johnson Matthey stock market price indicators, traders can identify Johnson Matthey position entry and exit signals to maximize returns.
Johnson Matthey Return and Market Media
The median price of Johnson Matthey for the period between Sun, Sep 1, 2024 and Sat, Nov 30, 2024 is 1521.0 with a coefficient of variation of 3.69. The daily time series for the period is distributed with a sample standard deviation of 56.12, arithmetic mean of 1522.56, and mean deviation of 36.69. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Johnson Matthey Executives Acquire Shares, Reflecting Confidence - TipRanks | 11/21/2024 |
About Johnson Matthey 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 Johnson or other stocks. Alpha measures the amount that position in Johnson Matthey 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 Johnson Matthey 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, Johnson Matthey's short interest history, or implied volatility extrapolated from Johnson Matthey options trading.
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Additional Tools for Johnson Stock Analysis
When running Johnson Matthey's price analysis, check to measure Johnson Matthey's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Johnson Matthey is operating at the current time. Most of Johnson Matthey's value examination focuses on studying past and present price action to predict the probability of Johnson Matthey's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Johnson Matthey's price. Additionally, you may evaluate how the addition of Johnson Matthey to your portfolios can decrease your overall portfolio volatility.