National Grid (Germany) Alpha and Beta Analysis
| NNGD Stock | EUR 54.00 1.00 1.82% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as National Grid plc. It also helps investors analyze the systematic and unsystematic risks associated with investing in National Grid over a specified time horizon. Remember, high National Grid'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 National Grid's market risk premium analysis include:
Beta 0.23 | Alpha (0.15) | Risk 1.6 | Sharpe Ratio (0.12) | Expected Return (0.19) |
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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National Grid Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. National Grid market risk premium is the additional return an investor will receive from holding National Grid 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 National Grid. 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 National Grid's performance over market.| α | -0.15 | β | 0.23 |
National Grid 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 National Grid's Buy-and-hold return. Our buy-and-hold chart shows how National Grid performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.National Grid Market Price Analysis
Market price analysis indicators help investors to evaluate how National Grid stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading National Grid shares will generate the highest return on investment. By understating and applying National Grid stock market price indicators, traders can identify National Grid position entry and exit signals to maximize returns.
National Grid Return and Market Media
The median price of National Grid for the period between Wed, Sep 25, 2024 and Tue, Dec 24, 2024 is 58.47 with a coefficient of variation of 2.94. The daily time series for the period is distributed with a sample standard deviation of 1.71, arithmetic mean of 58.27, and mean deviation of 1.32. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About National Grid 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 National or other stocks. Alpha measures the amount that position in National Grid plc 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 National Grid 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, National Grid's short interest history, or implied volatility extrapolated from National Grid options trading.
Build Portfolio with National Grid
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Additional Information and Resources on Investing in National Stock
When determining whether National Grid plc is a strong investment it is important to analyze National Grid'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 National Grid's future performance. For an informed investment choice regarding National Stock, refer to the following important reports:Check out National Grid Backtesting, National Grid Valuation, National Grid Correlation, National Grid Hype Analysis, National Grid Volatility, National Grid History and analyze National Grid Performance. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
National Grid 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.