Nasdaq 100 Index Alpha and Beta Analysis
| NDX Index | 21,768 29.34 0.13% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Nasdaq 100. It also helps investors analyze the systematic and unsystematic risks associated with investing in Nasdaq 100 over a specified time horizon. Remember, high Nasdaq 100'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 Nasdaq 100's market risk premium analysis include:
Beta 0.0 | Alpha 0.0 | Risk 1.07 | Sharpe Ratio 0.13 | Expected Return 0.14 |
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.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any index could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. Nasdaq 100 Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Nasdaq 100 market risk premium is the additional return an investor will receive from holding Nasdaq 100 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 Nasdaq 100. 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 Nasdaq 100's performance over market.| α | 0.00 | β | 0.00 |
Nasdaq 100 Return and Market Media
The median price of Nasdaq 100 for the period between Fri, Sep 27, 2024 and Thu, Dec 26, 2024 is 20550.65 with a coefficient of variation of 3.04. The daily time series for the period is distributed with a sample standard deviation of 628.78, arithmetic mean of 20672.27, and mean deviation of 538.91. The Index did not receive any noticable media coverage during the period. Price Growth (%) |
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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 Nasdaq 100 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, Nasdaq 100's short interest history, or implied volatility extrapolated from Nasdaq 100 options trading.