Us Bancorp Preferred Stock Alpha and Beta Analysis
| USB-PP Preferred Stock | USD 24.80 0.28 1.14% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as US Bancorp. It also helps investors analyze the systematic and unsystematic risks associated with investing in US Bancorp over a specified time horizon. Remember, high US Bancorp'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 US Bancorp's market risk premium analysis include:
Beta (0.07) | Alpha 0.037 | Risk 0.5 | Sharpe Ratio 0.0808 | Expected Return 0.0401 |
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.
USB-PP |
US Bancorp Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. US Bancorp market risk premium is the additional return an investor will receive from holding US Bancorp 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 US Bancorp. 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 US Bancorp's performance over market.| α | 0.04 | β | -0.07 |
US Bancorp 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 US Bancorp's Buy-and-hold return. Our buy-and-hold chart shows how US Bancorp performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.US Bancorp Market Price Analysis
Market price analysis indicators help investors to evaluate how US Bancorp preferred stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading US Bancorp shares will generate the highest return on investment. By understating and applying US Bancorp preferred stock market price indicators, traders can identify US Bancorp position entry and exit signals to maximize returns.
US Bancorp Return and Market Media
Price Growth (%) |
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About US Bancorp 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 USB-PP or other preferred stocks. Alpha measures the amount that position in US Bancorp 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 US Bancorp 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, US Bancorp's short interest history, or implied volatility extrapolated from US Bancorp options trading.
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Additional Tools for USB-PP Preferred Stock Analysis
When running US Bancorp's price analysis, check to measure US Bancorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy US Bancorp is operating at the current time. Most of US Bancorp's value examination focuses on studying past and present price action to predict the probability of US Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move US Bancorp's price. Additionally, you may evaluate how the addition of US Bancorp to your portfolios can decrease your overall portfolio volatility.