Reckitt Benckiser (UK) Alpha and Beta Analysis
| RKT Stock | 4,835 132.00 2.81% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Reckitt Benckiser Group. It also helps investors analyze the systematic and unsystematic risks associated with investing in Reckitt Benckiser over a specified time horizon. Remember, high Reckitt Benckiser'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 Reckitt Benckiser's market risk premium analysis include:
Beta (0.27) | Alpha 0.091 | Risk 1.42 | Sharpe Ratio 0.0695 | Expected Return 0.0989 |
Reckitt Benckiser 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.
Reckitt |
Reckitt Benckiser Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Reckitt Benckiser market risk premium is the additional return an investor will receive from holding Reckitt Benckiser 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 Reckitt Benckiser. 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 Reckitt Benckiser's performance over market.| α | 0.09 | β | -0.27 |
Reckitt Benckiser 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 Reckitt Benckiser's Buy-and-hold return. Our buy-and-hold chart shows how Reckitt Benckiser performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Reckitt Benckiser Market Price Analysis
Market price analysis indicators help investors to evaluate how Reckitt Benckiser stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Reckitt Benckiser shares will generate the highest return on investment. By understating and applying Reckitt Benckiser stock market price indicators, traders can identify Reckitt Benckiser position entry and exit signals to maximize returns.
Reckitt Benckiser Return and Market Media
The median price of Reckitt Benckiser for the period between Thu, Sep 12, 2024 and Wed, Dec 11, 2024 is 4750.0 with a coefficient of variation of 2.68. The daily time series for the period is distributed with a sample standard deviation of 126.51, arithmetic mean of 4726.52, and mean deviation of 106.23. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Reckitt readies second quarter of GBP1 billion share buyback - Marketscreener.com | 09/24/2024 |
2 | Reckitt Relief Rally Leads Shares Higher as Firm Cleared Over Baby Formula Case - Morningstar | 11/01/2024 |
3 | Reckitt Benckiser to start last half of GBP1 billion buyback - Marketscreener.com | 12/09/2024 |
About Reckitt Benckiser 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 Reckitt or other stocks. Alpha measures the amount that position in Reckitt Benckiser 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 Reckitt Benckiser 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, Reckitt Benckiser's short interest history, or implied volatility extrapolated from Reckitt Benckiser options trading.
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Other Information on Investing in Reckitt Stock
Reckitt Benckiser financial ratios help investors to determine whether Reckitt 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 Reckitt with respect to the benefits of owning Reckitt Benckiser security.