NRG Energy (Germany) Alpha and Beta Analysis
| NRA Stock | EUR 85.04 1.38 1.60% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as NRG Energy. It also helps investors analyze the systematic and unsystematic risks associated with investing in NRG Energy over a specified time horizon. Remember, high NRG Energy'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 NRG Energy's market risk premium analysis include:
Beta 0.73 | Alpha 0.23 | Risk 2.56 | Sharpe Ratio 0.0651 | Expected Return 0.17 |
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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NRG Energy Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. NRG Energy market risk premium is the additional return an investor will receive from holding NRG Energy 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 NRG Energy. 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 NRG Energy's performance over market.| α | 0.23 | β | 0.73 |
NRG Energy 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 NRG Energy's Buy-and-hold return. Our buy-and-hold chart shows how NRG Energy performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.NRG Energy Market Price Analysis
Market price analysis indicators help investors to evaluate how NRG Energy stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading NRG Energy shares will generate the highest return on investment. By understating and applying NRG Energy stock market price indicators, traders can identify NRG Energy position entry and exit signals to maximize returns.
NRG Energy Return and Market Media
The median price of NRG Energy for the period between Sun, Sep 22, 2024 and Sat, Dec 21, 2024 is 85.04 with a coefficient of variation of 7.12. The daily time series for the period is distributed with a sample standard deviation of 6.06, arithmetic mean of 85.08, and mean deviation of 5.17. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About NRG Energy 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 NRG or other stocks. Alpha measures the amount that position in NRG Energy 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 NRG Energy 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, NRG Energy's short interest history, or implied volatility extrapolated from NRG Energy options trading.
Build Portfolio with NRG Energy
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Additional Information and Resources on Investing in NRG Stock
When determining whether NRG Energy is a strong investment it is important to analyze NRG Energy'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 NRG Energy's future performance. For an informed investment choice regarding NRG Stock, refer to the following important reports:Check out NRG Energy Backtesting, NRG Energy Valuation, NRG Energy Correlation, NRG Energy Hype Analysis, NRG Energy Volatility, NRG Energy History and analyze NRG Energy Performance. For more detail on how to invest in NRG Stock please use our How to Invest in NRG Energy guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
NRG Energy 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.