Münchener Rück (Germany) Alpha and Beta Analysis
| MUV2 Stock | EUR 491.80 6.30 1.30% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Mnchener Rck AG. It also helps investors analyze the systematic and unsystematic risks associated with investing in Münchener Rück over a specified time horizon. Remember, high Münchener Rück'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 Münchener Rück's market risk premium analysis include:
Beta 0.6 | Alpha (0.04) | Risk 1.22 | Sharpe Ratio 0.0162 | Expected Return 0.0198 |
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.
Münchener |
Münchener Rück Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Münchener Rück market risk premium is the additional return an investor will receive from holding Münchener Rück 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 Münchener Rück. 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 Münchener Rück's performance over market.| α | -0.04 | β | 0.60 |
Münchener Rück 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 Münchener Rück's Buy-and-hold return. Our buy-and-hold chart shows how Münchener Rück performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Münchener Rück Market Price Analysis
Market price analysis indicators help investors to evaluate how Münchener Rück stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Münchener Rück shares will generate the highest return on investment. By understating and applying Münchener Rück stock market price indicators, traders can identify Münchener Rück position entry and exit signals to maximize returns.
Münchener Rück Return and Market Media
The median price of Münchener Rück for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 481.5 with a coefficient of variation of 2.24. The daily time series for the period is distributed with a sample standard deviation of 10.81, arithmetic mean of 482.95, and mean deviation of 8.94. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Münchener Rück 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 Münchener or other stocks. Alpha measures the amount that position in Mnchener Rck AG 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 Münchener Rück 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, Münchener Rück's short interest history, or implied volatility extrapolated from Münchener Rück options trading.
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Other Information on Investing in Münchener Stock
Münchener Rück financial ratios help investors to determine whether Münchener Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Münchener with respect to the benefits of owning Münchener Rück security.