Eaton PLC (Germany) Alpha and Beta Analysis
| 3EC Stock | EUR 360.00 7.95 2.26% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Eaton PLC. It also helps investors analyze the systematic and unsystematic risks associated with investing in Eaton PLC over a specified time horizon. Remember, high Eaton PLC'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 Eaton PLC's market risk premium analysis include:
Beta 1 | Alpha 0.4 | Risk 1.91 | Sharpe Ratio 0.26 | Expected Return 0.5 |
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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Eaton PLC Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Eaton PLC market risk premium is the additional return an investor will receive from holding Eaton PLC 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 Eaton PLC. 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 Eaton PLC's performance over market.| α | 0.40 | β | 1.00 |
Eaton PLC 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 Eaton PLC's Buy-and-hold return. Our buy-and-hold chart shows how Eaton PLC performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Eaton PLC Market Price Analysis
Market price analysis indicators help investors to evaluate how Eaton PLC stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Eaton PLC shares will generate the highest return on investment. By understating and applying Eaton PLC stock market price indicators, traders can identify Eaton PLC position entry and exit signals to maximize returns.
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Eaton PLC Return and Market Media
The median price of Eaton PLC for the period between Mon, Sep 9, 2024 and Sun, Dec 8, 2024 is 313.98 with a coefficient of variation of 9.54. The daily time series for the period is distributed with a sample standard deviation of 29.94, arithmetic mean of 313.79, and mean deviation of 24.3. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Eaton PLC 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 Eaton or other stocks. Alpha measures the amount that position in Eaton 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 Eaton PLC 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, Eaton PLC's short interest history, or implied volatility extrapolated from Eaton PLC options trading.
Build Portfolio with Eaton PLC
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Additional Information and Resources on Investing in Eaton Stock
When determining whether Eaton PLC offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Eaton PLC's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Eaton Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Eaton Plc Stock:Check out Eaton PLC Backtesting, Eaton PLC Valuation, Eaton PLC Correlation, Eaton PLC Hype Analysis, Eaton PLC Volatility, Eaton PLC History and analyze Eaton PLC Performance. For more detail on how to invest in Eaton Stock please use our How to Invest in Eaton PLC guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Eaton PLC 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.