Tower Semiconductor (Germany) Alpha and Beta Analysis
| TOW Stock | EUR 46.49 2.95 6.78% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Tower Semiconductor. It also helps investors analyze the systematic and unsystematic risks associated with investing in Tower Semiconductor over a specified time horizon. Remember, high Tower Semiconductor'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 Tower Semiconductor's market risk premium analysis include:
Beta (0.21) | Alpha 0.47 | Risk 3.39 | Sharpe Ratio 0.11 | Expected Return 0.38 |
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.
Tower |
Tower Semiconductor Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Tower Semiconductor market risk premium is the additional return an investor will receive from holding Tower Semiconductor 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 Tower Semiconductor. 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 Tower Semiconductor's performance over market.| α | 0.47 | β | -0.21 |
Tower Semiconductor 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 Tower Semiconductor's Buy-and-hold return. Our buy-and-hold chart shows how Tower Semiconductor performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Tower Semiconductor Market Price Analysis
Market price analysis indicators help investors to evaluate how Tower Semiconductor stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Tower Semiconductor shares will generate the highest return on investment. By understating and applying Tower Semiconductor stock market price indicators, traders can identify Tower Semiconductor position entry and exit signals to maximize returns.
Tower Semiconductor Return and Market Media
The median price of Tower Semiconductor for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 39.57 with a coefficient of variation of 5.89. The daily time series for the period is distributed with a sample standard deviation of 2.33, arithmetic mean of 39.48, and mean deviation of 1.85. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Tower Semiconductor 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 Tower or other stocks. Alpha measures the amount that position in Tower Semiconductor 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 Tower Semiconductor 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, Tower Semiconductor's short interest history, or implied volatility extrapolated from Tower Semiconductor options trading.
Build Portfolio with Tower Semiconductor
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Additional Information and Resources on Investing in Tower Stock
When determining whether Tower Semiconductor is a strong investment it is important to analyze Tower Semiconductor's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Tower Semiconductor's future performance. For an informed investment choice regarding Tower Stock, refer to the following important reports:Check out Tower Semiconductor Backtesting, Tower Semiconductor Valuation, Tower Semiconductor Correlation, Tower Semiconductor Hype Analysis, Tower Semiconductor Volatility, Tower Semiconductor History and analyze Tower Semiconductor Performance. For more detail on how to invest in Tower Stock please use our How to Invest in Tower Semiconductor guide.You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Tower Semiconductor technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.