Schwab Tax Free Bond Fund Alpha and Beta Analysis
| SWNTX Fund | USD 11.05 0.02 0.18% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Schwab Tax Free Bond. It also helps investors analyze the systematic and unsystematic risks associated with investing in Schwab Tax-free over a specified time horizon. Remember, high Schwab Tax-free'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 Schwab Tax-free's market risk premium analysis include:
Beta (0.07) | Alpha 0.008666 | Risk 0.21 | Sharpe Ratio 0.0678 | Expected Return 0.0144 |
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.
Schwab |
Schwab Tax-free Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Schwab Tax-free market risk premium is the additional return an investor will receive from holding Schwab Tax-free 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 Schwab Tax-free. 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 Schwab Tax-free's performance over market.| α | 0.01 | β | -0.07 |
Schwab Tax-free 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 Schwab Tax-free's Buy-and-hold return. Our buy-and-hold chart shows how Schwab Tax-free performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Schwab Tax-free Market Price Analysis
Market price analysis indicators help investors to evaluate how Schwab Tax-free mutual fund reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Schwab Tax-free shares will generate the highest return on investment. By understating and applying Schwab Tax-free mutual fund market price indicators, traders can identify Schwab Tax-free position entry and exit signals to maximize returns.
Schwab Tax-free Return and Market Media
The median price of Schwab Tax-free for the period between Thu, Aug 29, 2024 and Wed, Nov 27, 2024 is 11.02 with a coefficient of variation of 0.5. The daily time series for the period is distributed with a sample standard deviation of 0.06, arithmetic mean of 11.01, and mean deviation of 0.05. The Fund did not receive any noticable media coverage during the period. Price Growth (%) |
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About Schwab Tax-free 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 Schwab or other funds. Alpha measures the amount that position in Schwab Tax Free 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 Schwab Tax-free 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, Schwab Tax-free's short interest history, or implied volatility extrapolated from Schwab Tax-free options trading.
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Other Information on Investing in Schwab Mutual Fund
Schwab Tax-free financial ratios help investors to determine whether Schwab Mutual Fund 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 Schwab with respect to the benefits of owning Schwab Tax-free security.
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |