Digital Realty (Germany) Alpha and Beta Analysis
| FQI Stock | EUR 170.64 5.60 3.18% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Digital Realty Trust. It also helps investors analyze the systematic and unsystematic risks associated with investing in Digital Realty over a specified time horizon. Remember, high Digital Realty'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 Digital Realty's market risk premium analysis include:
Beta (0.19) | Alpha 0.36 | Risk 1.67 | Sharpe Ratio 0.22 | Expected Return 0.36 |
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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Digital Realty Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Digital Realty market risk premium is the additional return an investor will receive from holding Digital Realty 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 Digital Realty. 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 Digital Realty's performance over market.| α | 0.36 | β | -0.19 |
Digital Realty 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 Digital Realty's Buy-and-hold return. Our buy-and-hold chart shows how Digital Realty performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Digital Realty Market Price Analysis
Market price analysis indicators help investors to evaluate how Digital Realty stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Digital Realty shares will generate the highest return on investment. By understating and applying Digital Realty stock market price indicators, traders can identify Digital Realty position entry and exit signals to maximize returns.
Digital Realty Return and Market Media
The median price of Digital Realty for the period between Thu, Sep 19, 2024 and Wed, Dec 18, 2024 is 163.89 with a coefficient of variation of 9.41. The daily time series for the period is distributed with a sample standard deviation of 15.17, arithmetic mean of 161.18, and mean deviation of 13.72. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Digital Realty 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 Digital or other stocks. Alpha measures the amount that position in Digital Realty Trust 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 Digital Realty 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, Digital Realty's short interest history, or implied volatility extrapolated from Digital Realty options trading.
Build Portfolio with Digital Realty
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Additional Information and Resources on Investing in Digital Stock
When determining whether Digital Realty Trust is a strong investment it is important to analyze Digital Realty'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 Digital Realty's future performance. For an informed investment choice regarding Digital Stock, refer to the following important reports:Check out Digital Realty Backtesting, Digital Realty Valuation, Digital Realty Correlation, Digital Realty Hype Analysis, Digital Realty Volatility, Digital Realty History and analyze Digital Realty Performance. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Digital Realty 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.