MercadoLibre (Germany) Alpha and Beta Analysis
| MLB1 Stock | EUR 1,921 56.40 3.03% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as MercadoLibre. It also helps investors analyze the systematic and unsystematic risks associated with investing in MercadoLibre over a specified time horizon. Remember, high MercadoLibre'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 MercadoLibre's market risk premium analysis include:
Beta 0.98 | Alpha 0.0457 | Risk 3.04 | Sharpe Ratio 0.0467 | 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.
MercadoLibre |
MercadoLibre Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. MercadoLibre market risk premium is the additional return an investor will receive from holding MercadoLibre 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 MercadoLibre. 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 MercadoLibre's performance over market.| α | 0.05 | β | 0.98 |
MercadoLibre 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 MercadoLibre's Buy-and-hold return. Our buy-and-hold chart shows how MercadoLibre performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.MercadoLibre Market Price Analysis
Market price analysis indicators help investors to evaluate how MercadoLibre stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading MercadoLibre shares will generate the highest return on investment. By understating and applying MercadoLibre stock market price indicators, traders can identify MercadoLibre position entry and exit signals to maximize returns.
MercadoLibre Return and Market Media
The median price of MercadoLibre for the period between Tue, Aug 27, 2024 and Mon, Nov 25, 2024 is 1861.2 with a coefficient of variation of 3.27. The daily time series for the period is distributed with a sample standard deviation of 60.36, arithmetic mean of 1848.43, and mean deviation of 48.66. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About MercadoLibre 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 MercadoLibre or other stocks. Alpha measures the amount that position in MercadoLibre 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 MercadoLibre 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, MercadoLibre's short interest history, or implied volatility extrapolated from MercadoLibre options trading.
Build Portfolio with MercadoLibre
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
Additional Information and Resources on Investing in MercadoLibre Stock
When determining whether MercadoLibre offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of MercadoLibre'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 Mercadolibre Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Mercadolibre Stock:Check out MercadoLibre Backtesting, MercadoLibre Valuation, MercadoLibre Correlation, MercadoLibre Hype Analysis, MercadoLibre Volatility, MercadoLibre History and analyze MercadoLibre Performance. For more detail on how to invest in MercadoLibre Stock please use our How to Invest in MercadoLibre guide.You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
MercadoLibre 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.