Latam Airlines Group Stock Alpha and Beta Analysis
| LTM Stock | USD 26.95 0.09 0.34% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as LATAM Airlines Group. It also helps investors analyze the systematic and unsystematic risks associated with investing in LATAM Airlines over a specified time horizon. Remember, high LATAM Airlines' 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 LATAM Airlines' market risk premium analysis include:
Beta 0.42 | Alpha 0.0629 | Risk 1.46 | Sharpe Ratio 0.0463 | Expected Return 0.0674 |
Enterprise Value |
|
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.
LATAM |
LATAM Airlines Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. LATAM Airlines market risk premium is the additional return an investor will receive from holding LATAM Airlines 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 LATAM Airlines. 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 LATAM Airlines' performance over market.| α | 0.06 | β | 0.42 |
LATAM Airlines 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 LATAM Airlines' Buy-and-hold return. Our buy-and-hold chart shows how LATAM Airlines performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.LATAM Airlines Market Price Analysis
Market price analysis indicators help investors to evaluate how LATAM Airlines stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading LATAM Airlines shares will generate the highest return on investment. By understating and applying LATAM Airlines stock market price indicators, traders can identify LATAM Airlines position entry and exit signals to maximize returns.
LATAM Airlines Return and Market Media
The median price of LATAM Airlines for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 26.29 with a coefficient of variation of 4.28. The daily time series for the period is distributed with a sample standard deviation of 1.13, arithmetic mean of 26.34, and mean deviation of 0.89. The Stock received a lot of media exposure during the period. Price Growth (%) |
| Timeline |
1 | Acquisition by Eugster Jack W of 3000 shares of LATAM AIRLINES at 41.9541 subject to Rule 16b-3 | 08/30/2024 |
2 | Acquisition by Eugster Jack W of 2000 shares of LATAM AIRLINES at 22.5 subject to Rule 16b-3 | 09/05/2024 |
3 | Disposition of 60000 shares by Akradi Bahram of LATAM AIRLINES subject to Rule 16b-3 | 09/06/2024 |
4 | Acquisition by Eugster Jack W of 2237 shares of LATAM AIRLINES subject to Rule 16b-3 | 09/11/2024 |
5 | LATAM to Host Investor Day on October 22, 2024 in New York | 10/07/2024 |
6 | LATAM Airlines Group SA Q2 2024 Earnings Call Highlights Strong Revenue Growth and ... | 10/09/2024 |
7 | LATAMs strong performance and positive financial projections accompanied the Ring The Bell Ceremony and Investor Day at the New York Stock Exchange - LATAM Airl... | 10/22/2024 |
8 | LATAM Shows Fast-paced Momentum But Is Still a Bargain Stock | 10/24/2024 |
9 | Boeing Secures Order For 10 787s From LATAM Airlines Details | 10/28/2024 |
10 | Disposition of 106000 shares by Akradi Bahram of LATAM Airlines at 11.0726 subject to Rule 16b-3 | 10/31/2024 |
11 | Best Growth Stocks to Buy for November 5th | 11/05/2024 |
12 | LATAM Airlines Group SA Q3 2024 Earnings Call Highlights Record Passenger Growth and ... | 11/08/2024 |
13 | Does LATAM Have the Potential to Rally 40.56 percent as Wall Street Analysts Expect | 11/11/2024 |
14 | LATAM group continues to show positive results and closes the first quarter with a net profit of US121.8 million - LATAM Airlines | 11/18/2024 |
15 | LATAM Airlines Group SA Shares Down 5.3 percent on Nov 22 | 11/22/2024 |
About LATAM Airlines 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 LATAM or other stocks. Alpha measures the amount that position in LATAM Airlines Group 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.
| 2021 | 2022 | 2023 | 2024 (projected) | Payables Turnover | 5.51 | 12.54 | 7.49 | 5.76 | Days Of Inventory On Hand | 21.13 | 21.52 | 24.54 | 15.27 |
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 LATAM Airlines 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, LATAM Airlines' short interest history, or implied volatility extrapolated from LATAM Airlines options trading.
Build Portfolio with LATAM Airlines
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 LATAM Airlines Backtesting, LATAM Airlines Valuation, LATAM Airlines Correlation, LATAM Airlines Hype Analysis, LATAM Airlines Volatility, LATAM Airlines History and analyze LATAM Airlines Performance. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
LATAM Airlines 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.