Magic Software (Israel) Alpha and Beta Analysis
| MGIC Stock | ILA 4,060 125.00 2.99% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Magic Software Enterprises. It also helps investors analyze the systematic and unsystematic risks associated with investing in Magic Software over a specified time horizon. Remember, high Magic Software'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 Magic Software's market risk premium analysis include:
Beta (0.02) | Alpha 0.0399 | Risk 2.41 | Sharpe Ratio 0.0658 | Expected Return 0.16 |
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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Magic Software Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Magic Software market risk premium is the additional return an investor will receive from holding Magic Software 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 Magic Software. 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 Magic Software's performance over market.| α | 0.04 | β | -0.02 |
Magic Software 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 Magic Software's Buy-and-hold return. Our buy-and-hold chart shows how Magic Software performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Magic Software Market Price Analysis
Market price analysis indicators help investors to evaluate how Magic Software stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Magic Software shares will generate the highest return on investment. By understating and applying Magic Software stock market price indicators, traders can identify Magic Software position entry and exit signals to maximize returns.
Magic Software Return and Market Media
The median price of Magic Software for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 4137.0 with a coefficient of variation of 4.26. The daily time series for the period is distributed with a sample standard deviation of 175.31, arithmetic mean of 4118.8, and mean deviation of 148.75. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Magic Software 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 Magic or other stocks. Alpha measures the amount that position in Magic Software Enter 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 Magic Software 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, Magic Software's short interest history, or implied volatility extrapolated from Magic Software options trading.
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Additional Information and Resources on Investing in Magic Stock
When determining whether Magic Software Enter offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Magic Software's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Magic Software Enterprises Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Magic Software Enterprises Stock:Check out Magic Software Backtesting, Magic Software Valuation, Magic Software Correlation, Magic Software Hype Analysis, Magic Software Volatility, Magic Software History and analyze Magic Software Performance. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Magic Software 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.