NIIT (India) Alpha and Beta Analysis

NIITLTD Stock   215.80  0.98  0.46%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as NIIT Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in NIIT over a specified time horizon. Remember, high NIIT'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 NIIT's market risk premium analysis include:
Beta
2.73
Alpha
0.000899
Risk
3.92
Sharpe Ratio
0.0907
Expected Return
0.36
Please note that although NIIT alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, NIIT did 0.0009  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of NIIT Limited stock's relative risk over its benchmark. NIIT Limited has a beta of 2.73  . As the market goes up, the company is expected to outperform it. However, if the market returns are negative, NIIT will likely underperform. .

NIIT Quarterly Cash And Equivalents

707.41 Million

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 NIIT Backtesting, NIIT Valuation, NIIT Correlation, NIIT Hype Analysis, NIIT Volatility, NIIT History and analyze NIIT Performance.

NIIT Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. NIIT market risk premium is the additional return an investor will receive from holding NIIT 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 NIIT. 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 NIIT's performance over market.
α0.0009   β2.73

NIIT 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 NIIT's Buy-and-hold return. Our buy-and-hold chart shows how NIIT performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

NIIT Market Price Analysis

Market price analysis indicators help investors to evaluate how NIIT stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading NIIT shares will generate the highest return on investment. By understating and applying NIIT stock market price indicators, traders can identify NIIT position entry and exit signals to maximize returns.

NIIT Return and Market Media

The median price of NIIT for the period between Fri, Sep 13, 2024 and Thu, Dec 12, 2024 is 179.09 with a coefficient of variation of 11.65. The daily time series for the period is distributed with a sample standard deviation of 21.21, arithmetic mean of 182.06, and mean deviation of 16.9. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  

About NIIT 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 NIIT or other stocks. Alpha measures the amount that position in NIIT Limited 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 NIIT 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, NIIT's short interest history, or implied volatility extrapolated from NIIT options trading.

Build Portfolio with NIIT

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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Align your risk with return expectations

By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations

Other Information on Investing in NIIT Stock

NIIT financial ratios help investors to determine whether NIIT 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 NIIT with respect to the benefits of owning NIIT security.