Tech Mahindra (India) Alpha and Beta Analysis
TECHM Stock | 1,733 14.85 0.85% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Tech Mahindra Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Tech Mahindra over a specified time horizon. Remember, high Tech Mahindra'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 Tech Mahindra's market risk premium analysis include:
Beta 0.2 | Alpha 0.0991 | Risk 1.64 | Sharpe Ratio 0.0797 | Expected Return 0.13 |
Tech Mahindra 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.
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Tech Mahindra Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Tech Mahindra market risk premium is the additional return an investor will receive from holding Tech Mahindra 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 Tech Mahindra. 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 Tech Mahindra's performance over market.α | 0.1 | β | 0.20 |
Tech Mahindra 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 Tech Mahindra's Buy-and-hold return. Our buy-and-hold chart shows how Tech Mahindra performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Tech Mahindra Market Price Analysis
Market price analysis indicators help investors to evaluate how Tech Mahindra stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Tech Mahindra shares will generate the highest return on investment. By understating and applying Tech Mahindra stock market price indicators, traders can identify Tech Mahindra position entry and exit signals to maximize returns.
Tech Mahindra Return and Market Media
The median price of Tech Mahindra for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 1631.99 with a coefficient of variation of 2.8. The daily time series for the period is distributed with a sample standard deviation of 46.02, arithmetic mean of 1642.02, and mean deviation of 39.11. The Stock received some media coverage during the period. Price Growth (%) |
Timeline |
1 | Wipro, KPIT Tech, Infosys, TechM How US Fed rate cuts may impact IT sector stocks to buy - Business Today | 09/17/2024 |
2 | Stock Market Updates Sensex Rises Over 300 Points, Nifty Above 25,900 TechM Gains 3 percent - News18 | 09/30/2024 |
3 | Tech Mahindra Share Price Highlights Tech Mahindra Stock Price History - The Economic Times | 11/21/2024 |
About Tech Mahindra 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 Tech or other stocks. Alpha measures the amount that position in Tech Mahindra 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 Tech Mahindra 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, Tech Mahindra's short interest history, or implied volatility extrapolated from Tech Mahindra options trading.
Build Portfolio with Tech Mahindra
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Align your risk with return expectations
Other Information on Investing in Tech Stock
Tech Mahindra financial ratios help investors to determine whether Tech 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 Tech with respect to the benefits of owning Tech Mahindra security.