Karya Bersama (Indonesia) Alpha and Beta Analysis

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Karya Bersama Anugerah. It also helps investors analyze the systematic and unsystematic risks associated with investing in Karya Bersama over a specified time horizon. Remember, high Karya Bersama'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 Karya Bersama's market risk premium analysis include:
Beta
(1.63)
Alpha
0.0383
Risk
3.94
Sharpe Ratio
(0.04)
Expected Return
(0.15)
Please note that although Karya Bersama alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Karya Bersama did 0.04  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Karya Bersama Anugerah stock's relative risk over its benchmark. Karya Bersama Anugerah has a beta of 1.63  . As returns on the market increase, returns on owning Karya Bersama are expected to decrease by larger amounts. On the other hand, during market turmoil, Karya Bersama is expected to outperform it. .
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.
  
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Karya Bersama Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Karya Bersama market risk premium is the additional return an investor will receive from holding Karya Bersama 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 Karya Bersama. 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 Karya Bersama's performance over market.
α0.04   β-1.63
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 Karya Bersama 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, Karya Bersama's short interest history, or implied volatility extrapolated from Karya Bersama options trading.

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Other Information on Investing in Karya Stock

Karya Bersama financial ratios help investors to determine whether Karya 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 Karya with respect to the benefits of owning Karya Bersama security.