Cadence Design (Germany) Alpha and Beta Analysis
| CDS Stock | EUR 293.00 9.00 3.17% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Cadence Design Systems. It also helps investors analyze the systematic and unsystematic risks associated with investing in Cadence Design over a specified time horizon. Remember, high Cadence Design'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 Cadence Design's market risk premium analysis include:
Beta 0.42 | Alpha 0.23 | Risk 2.1 | Sharpe Ratio 0.13 | Expected Return 0.28 |
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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Cadence Design Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Cadence Design market risk premium is the additional return an investor will receive from holding Cadence Design 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 Cadence Design. 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 Cadence Design's performance over market.| α | 0.23 | β | 0.42 |
Cadence Design 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 Cadence Design's Buy-and-hold return. Our buy-and-hold chart shows how Cadence Design performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Cadence Design Market Price Analysis
Market price analysis indicators help investors to evaluate how Cadence Design stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cadence Design shares will generate the highest return on investment. By understating and applying Cadence Design stock market price indicators, traders can identify Cadence Design position entry and exit signals to maximize returns.
Cadence Design Return and Market Media
The median price of Cadence Design for the period between Mon, Sep 23, 2024 and Sun, Dec 22, 2024 is 269.2 with a coefficient of variation of 8.59. The daily time series for the period is distributed with a sample standard deviation of 23.01, arithmetic mean of 267.87, and mean deviation of 21.1. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Cadence Design 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 Cadence or other stocks. Alpha measures the amount that position in Cadence Design Systems 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 Cadence Design 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, Cadence Design's short interest history, or implied volatility extrapolated from Cadence Design options trading.
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Additional Information and Resources on Investing in Cadence Stock
When determining whether Cadence Design Systems is a strong investment it is important to analyze Cadence Design'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 Cadence Design's future performance. For an informed investment choice regarding Cadence Stock, refer to the following important reports:Check out Cadence Design Backtesting, Cadence Design Valuation, Cadence Design Correlation, Cadence Design Hype Analysis, Cadence Design Volatility, Cadence Design History and analyze Cadence Design Performance. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Cadence Design 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.