Natco Pharma (India) Alpha and Beta Analysis
| NATCOPHARM | 1,376 38.05 2.84% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Natco Pharma Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Natco Pharma over a specified time horizon. Remember, high Natco Pharma'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 Natco Pharma's market risk premium analysis include:
Beta 0.39 | Alpha (0.21) | Risk 1.67 | Sharpe Ratio (0.1) | Expected Return (0.16) |
Natco Pharma Quarterly Cash And Equivalents |
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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.
Natco |
Natco Pharma Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Natco Pharma market risk premium is the additional return an investor will receive from holding Natco Pharma 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 Natco Pharma. 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 Natco Pharma's performance over market.| α | -0.21 | β | 0.39 |
Natco Pharma 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 Natco Pharma's Buy-and-hold return. Our buy-and-hold chart shows how Natco Pharma performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Natco Pharma Market Price Analysis
Market price analysis indicators help investors to evaluate how Natco Pharma stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Natco Pharma shares will generate the highest return on investment. By understating and applying Natco Pharma stock market price indicators, traders can identify Natco Pharma position entry and exit signals to maximize returns.
Natco Pharma Return and Market Media
The median price of Natco Pharma for the period between Mon, Sep 2, 2024 and Sun, Dec 1, 2024 is 1407.44 with a coefficient of variation of 5.63. The daily time series for the period is distributed with a sample standard deviation of 80.41, arithmetic mean of 1428.94, and mean deviation of 66.26. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Trade Spotlight How should you trade Bajaj Finance, Nestle, Indian Hotels, Natco Pharma, Havells and... - Moneycontrol | 09/18/2024 |
2 | Natco Pharma Ltd. Stock Sees Dip, But Long-Term Outlook Remains Positive - MarketsMojo | 10/25/2024 |
3 | Earnings Beat NATCO Pharma Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models - Simply Wall St | 11/14/2024 |
4 | NATCO Pharma Limited Passed Our Checks, And Its About To Pay A 1.50 Dividend - Simply Wall St | 11/22/2024 |
About Natco Pharma 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 Natco or other stocks. Alpha measures the amount that position in Natco Pharma Limited 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 Natco Pharma 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, Natco Pharma's short interest history, or implied volatility extrapolated from Natco Pharma options trading.
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Other Information on Investing in Natco Stock
Natco Pharma financial ratios help investors to determine whether Natco 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 Natco with respect to the benefits of owning Natco Pharma security.