Renuka City (Sri Lanka) Alpha and Beta Analysis

RENUN0000  LKR 389.75  0.75  0.19%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Renuka City Hotel. It also helps investors analyze the systematic and unsystematic risks associated with investing in Renuka City over a specified time horizon. Remember, high Renuka City'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 Renuka City's market risk premium analysis include:
Beta
0.021
Alpha
0.0912
Risk
2.27
Sharpe Ratio
0.0445
Expected Return
0.1
Please note that although Renuka City alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, Renuka City did 0.09  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Renuka City Hotel stock's relative risk over its benchmark. Renuka City Hotel has a beta of 0.02  . As returns on the market increase, Renuka City's returns are expected to increase less than the market. However, during the bear market, the loss of holding Renuka City is expected to be smaller as well. .
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.
  
Check out Renuka City Backtesting, Renuka City Valuation, Renuka City Correlation, Renuka City Hype Analysis, Renuka City Volatility, Renuka City History and analyze Renuka City Performance.

Renuka City Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Renuka City market risk premium is the additional return an investor will receive from holding Renuka City 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 Renuka City. 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 Renuka City's performance over market.
α0.09   β0.02

Renuka City 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 Renuka City's Buy-and-hold return. Our buy-and-hold chart shows how Renuka City performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Renuka City Market Price Analysis

Market price analysis indicators help investors to evaluate how Renuka City stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Renuka City shares will generate the highest return on investment. By understating and applying Renuka City stock market price indicators, traders can identify Renuka City position entry and exit signals to maximize returns.

Renuka City Return and Market Media

The median price of Renuka City for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 369.0 with a coefficient of variation of 3.11. The daily time series for the period is distributed with a sample standard deviation of 11.5, arithmetic mean of 369.77, and mean deviation of 10.15. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Renuka City 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 Renuka or other stocks. Alpha measures the amount that position in Renuka City Hotel 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 Renuka City 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, Renuka City's short interest history, or implied volatility extrapolated from Renuka City options trading.

Build Portfolio with Renuka City

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.

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations

Other Information on Investing in Renuka Stock

Renuka City financial ratios help investors to determine whether Renuka 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 Renuka with respect to the benefits of owning Renuka City security.