Watsco Inc Stock Alpha and Beta Analysis
| WSO-B Stock | USD 535.00 15.30 2.94% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Watsco Inc. It also helps investors analyze the systematic and unsystematic risks associated with investing in Watsco over a specified time horizon. Remember, high Watsco'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 Watsco's market risk premium analysis include:
Beta 0.14 | Alpha 0.18 | Risk 1.86 | Sharpe Ratio 0.0972 | Expected Return 0.18 |
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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.
Watsco |
Watsco Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Watsco market risk premium is the additional return an investor will receive from holding Watsco 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 Watsco. 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 Watsco's performance over market.| α | 0.18 | β | 0.14 |
Watsco 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 Watsco's Buy-and-hold return. Our buy-and-hold chart shows how Watsco performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Watsco Market Price Analysis
Market price analysis indicators help investors to evaluate how Watsco stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Watsco shares will generate the highest return on investment. By understating and applying Watsco stock market price indicators, traders can identify Watsco position entry and exit signals to maximize returns.
Watsco Return and Market Media
The median price of Watsco for the period between Wed, Aug 28, 2024 and Tue, Nov 26, 2024 is 492.3 with a coefficient of variation of 3.66. The daily time series for the period is distributed with a sample standard deviation of 17.97, arithmetic mean of 491.75, and mean deviation of 12.25. The Stock received a lot of media exposure during the period. Price Growth (%) |
| Timeline |
1 | Watsco Declares 2.70 Quarterly Dividend | 10/01/2024 |
2 | Watsco Schedules Third Quarter Earnings Conference Callon Wednesday, October 23, 2024 | 10/15/2024 |
| Watsco dividend paid on 16th of October 2024 | 10/16/2024 |
3 | 100 Invested In Watsco 5 Years Ago Would Be Worth This Much Today | 10/22/2024 |
4 | Watsco reports Q3 earnings and revenue miss amid efforts to regain market share | 10/23/2024 |
5 | Watsco, Inc. Q3 2024 Earnings Call Transcript | 10/24/2024 |
6 | Heres How Much 100 Invested In Watsco 15 Years Ago Would Be Worth Today | 10/30/2024 |
| Watsco dividend paid on 31st of October 2024 | 10/31/2024 |
7 | Watsco, Inc. Shares Sold by AIA Group Ltd | 11/08/2024 |
8 | Disposition of 1494 shares by Albert Nahmad of Watsco subject to Rule 16b-3 | 11/11/2024 |
9 | Watsco stock performs better than its underlying earnings growth over last five years | 11/14/2024 |
10 | Watsco Expands in Southwest with AI Innovations, Faces Supply Chain and Cost Challenges | 11/18/2024 |
11 | Why Is Watsco Up 14.2 percent Since Last Earnings Report | 11/22/2024 |
About Watsco 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 Watsco or other stocks. Alpha measures the amount that position in Watsco Inc 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.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0267 | 0.0375 | 0.0244 | 0.0195 | Price To Sales Ratio | 1.76 | 1.22 | 2.15 | 2.26 |
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 Watsco 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, Watsco's short interest history, or implied volatility extrapolated from Watsco options trading.
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Check out Watsco Backtesting, Watsco Valuation, Watsco Correlation, Watsco Hype Analysis, Watsco Volatility, Watsco History and analyze Watsco Performance. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Watsco 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.