Magna International Stock Alpha and Beta Analysis
| MG Stock | CAD 61.64 1.96 3.28% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Magna International. It also helps investors analyze the systematic and unsystematic risks associated with investing in Magna International over a specified time horizon. Remember, high Magna International'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 Magna International's market risk premium analysis include:
Beta 0.74 | Alpha 0.0538 | Risk 2.06 | Sharpe Ratio 0.0668 | Expected Return 0.14 |
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.
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Magna International Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Magna International market risk premium is the additional return an investor will receive from holding Magna International 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 Magna International. 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 Magna International's performance over market.| α | 0.05 | β | 0.74 |
Magna International 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 Magna International's Buy-and-hold return. Our buy-and-hold chart shows how Magna International performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Magna International Market Price Analysis
Market price analysis indicators help investors to evaluate how Magna International stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Magna International shares will generate the highest return on investment. By understating and applying Magna International stock market price indicators, traders can identify Magna International position entry and exit signals to maximize returns.
Magna International Return and Market Media
The median price of Magna International for the period between Sat, Aug 24, 2024 and Fri, Nov 22, 2024 is 56.68 with a coefficient of variation of 4.32. The daily time series for the period is distributed with a sample standard deviation of 2.46, arithmetic mean of 57.0, and mean deviation of 1.97. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Magna International 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 Magna or other stocks. Alpha measures the amount that position in Magna International 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 Magna International 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, Magna International's short interest history, or implied volatility extrapolated from Magna International options trading.
Build Portfolio with Magna International
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 Magna International Backtesting, Magna International Valuation, Magna International Correlation, Magna International Hype Analysis, Magna International Volatility, Magna International History and analyze Magna International Performance. To learn how to invest in Magna Stock, please use our How to Invest in Magna International guide.You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Magna International 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.