Petro Rio (Brazil) Alpha and Beta Analysis
| PRIO3 Stock | BRL 40.40 1.27 3.25% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Petro Rio SA. It also helps investors analyze the systematic and unsystematic risks associated with investing in Petro Rio over a specified time horizon. Remember, high Petro Rio'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 Petro Rio's market risk premium analysis include:
Beta 0.53 | Alpha (0.28) | Risk 1.82 | Sharpe Ratio (0.13) | Expected Return (0.23) |
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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Petro Rio Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Petro Rio market risk premium is the additional return an investor will receive from holding Petro Rio 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 Petro Rio. 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 Petro Rio's performance over market.| α | -0.28 | β | 0.53 |
Petro Rio 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 Petro Rio's Buy-and-hold return. Our buy-and-hold chart shows how Petro Rio performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Petro Rio Market Price Analysis
Market price analysis indicators help investors to evaluate how Petro Rio stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Petro Rio shares will generate the highest return on investment. By understating and applying Petro Rio stock market price indicators, traders can identify Petro Rio position entry and exit signals to maximize returns.
Petro Rio Return and Market Media
The median price of Petro Rio for the period between Mon, Aug 26, 2024 and Sun, Nov 24, 2024 is 43.19 with a coefficient of variation of 5.54. The daily time series for the period is distributed with a sample standard deviation of 2.38, arithmetic mean of 42.99, and mean deviation of 1.95. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Petro Rio 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 Petro or other stocks. Alpha measures the amount that position in Petro Rio SA 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 Petro Rio 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, Petro Rio's short interest history, or implied volatility extrapolated from Petro Rio options trading.
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Additional Tools for Petro Stock Analysis
When running Petro Rio's price analysis, check to measure Petro Rio's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Petro Rio is operating at the current time. Most of Petro Rio's value examination focuses on studying past and present price action to predict the probability of Petro Rio's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Petro Rio's price. Additionally, you may evaluate how the addition of Petro Rio to your portfolios can decrease your overall portfolio volatility.