Sprott Lithium Miners Etf Alpha and Beta Analysis
| LITP Etf | 8.35 0.11 1.30% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Sprott Lithium Miners. It also helps investors analyze the systematic and unsystematic risks associated with investing in Sprott Lithium over a specified time horizon. Remember, high Sprott Lithium'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 Sprott Lithium's market risk premium analysis include:
Beta 1.14 | Alpha 0.12 | Risk 3.6 | Sharpe Ratio 0.0692 | Expected Return 0.25 |
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.
Sprott |
Sprott Lithium Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Sprott Lithium market risk premium is the additional return an investor will receive from holding Sprott Lithium 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 Sprott Lithium. 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 Sprott Lithium's performance over market.| α | 0.12 | β | 1.14 |
Sprott Lithium 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 Sprott Lithium's Buy-and-hold return. Our buy-and-hold chart shows how Sprott Lithium performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Sprott Lithium Market Price Analysis
Market price analysis indicators help investors to evaluate how Sprott Lithium etf reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Sprott Lithium shares will generate the highest return on investment. By understating and applying Sprott Lithium etf market price indicators, traders can identify Sprott Lithium position entry and exit signals to maximize returns.
Sprott Lithium Return and Market Media
The median price of Sprott Lithium for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 8.36 with a coefficient of variation of 9.95. The daily time series for the period is distributed with a sample standard deviation of 0.79, arithmetic mean of 7.96, and mean deviation of 0.7. The Etf received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Long Term Investment Analysis - Stock Traders Daily | 09/05/2024 |
2 | Learn to Evaluate using the Charts - Stock Traders Daily | 10/01/2024 |
3 | Pivots Trading Plans and Risk Controls - Stock Traders Daily | 11/13/2024 |
About Sprott Lithium 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 Sprott or other etfs. Alpha measures the amount that position in Sprott Lithium Miners 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 Sprott Lithium 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, Sprott Lithium's short interest history, or implied volatility extrapolated from Sprott Lithium options trading.
Build Portfolio with Sprott Lithium
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Sprott Lithium Backtesting, Portfolio Optimization, Sprott Lithium Correlation, Sprott Lithium Hype Analysis, Sprott Lithium Volatility, Sprott Lithium History and analyze Sprott Lithium Performance. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Sprott Lithium technical etf 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, etf market cycles, or different charting patterns.