SHOPRITE HDGS (Germany) Alpha and Beta Analysis
| HY7A Stock | EUR 14.40 0.20 1.37% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as SHOPRITE HDGS ADR. It also helps investors analyze the systematic and unsystematic risks associated with investing in SHOPRITE HDGS over a specified time horizon. Remember, high SHOPRITE HDGS'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 SHOPRITE HDGS's market risk premium analysis include:
Beta 0.17 | Alpha 0.0222 | Risk 1.88 | Sharpe Ratio 0.0029 | Expected Return 0.0054 |
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.
SHOPRITE |
SHOPRITE HDGS Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. SHOPRITE HDGS market risk premium is the additional return an investor will receive from holding SHOPRITE HDGS 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 SHOPRITE HDGS. 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 SHOPRITE HDGS's performance over market.| α | 0.02 | β | 0.17 |
SHOPRITE HDGS Fundamentals Vs Peers
Comparing SHOPRITE HDGS's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze SHOPRITE HDGS's direct or indirect competition across all of the common fundamentals between SHOPRITE HDGS and the related equities. This way, we can detect undervalued stocks with similar characteristics as SHOPRITE HDGS or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of SHOPRITE HDGS's fundamental indicators could also be used in its relative valuation, which is a method of valuing SHOPRITE HDGS by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare SHOPRITE HDGS to competition |
| Fundamentals | SHOPRITE HDGS | Peer Average |
| Return On Equity | 0.24 | -0.31 |
| Return On Asset | 0.0686 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.05 % | (5.51) % |
| Shares Outstanding | 542.51 M | 571.82 M |
| Shares Owned By Institutions | 0.01 % | 39.21 % |
| Price To Earning | 27.81 X | 28.72 X |
SHOPRITE HDGS Opportunities
SHOPRITE HDGS Return and Market Media
The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About SHOPRITE HDGS 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 SHOPRITE or other stocks. Alpha measures the amount that position in SHOPRITE HDGS ADR 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 SHOPRITE HDGS 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, SHOPRITE HDGS's short interest history, or implied volatility extrapolated from SHOPRITE HDGS options trading.
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Other Information on Investing in SHOPRITE Stock
SHOPRITE HDGS financial ratios help investors to determine whether SHOPRITE Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in SHOPRITE with respect to the benefits of owning SHOPRITE HDGS security.