Pakistan Petroleum (Pakistan) Alpha and Beta Analysis
| PPL Stock | 174.07 2.19 1.24% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Pakistan Petroleum. It also helps investors analyze the systematic and unsystematic risks associated with investing in Pakistan Petroleum over a specified time horizon. Remember, high Pakistan Petroleum'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 Pakistan Petroleum's market risk premium analysis include:
Beta (0.78) | Alpha 0.83 | Risk 2.59 | Sharpe Ratio 0.3 | Expected Return 0.77 |
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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Pakistan Petroleum Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Pakistan Petroleum market risk premium is the additional return an investor will receive from holding Pakistan Petroleum 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 Pakistan Petroleum. 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 Pakistan Petroleum's performance over market.| α | 0.83 | β | -0.78 |
Pakistan Petroleum 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 Pakistan Petroleum's Buy-and-hold return. Our buy-and-hold chart shows how Pakistan Petroleum performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Pakistan Petroleum Market Price Analysis
Market price analysis indicators help investors to evaluate how Pakistan Petroleum stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Pakistan Petroleum shares will generate the highest return on investment. By understating and applying Pakistan Petroleum stock market price indicators, traders can identify Pakistan Petroleum position entry and exit signals to maximize returns.
Pakistan Petroleum Return and Market Media
The median price of Pakistan Petroleum for the period between Thu, Sep 12, 2024 and Wed, Dec 11, 2024 is 134.0 with a coefficient of variation of 16.44. The daily time series for the period is distributed with a sample standard deviation of 22.2, arithmetic mean of 135.05, and mean deviation of 19.19. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Pakistan Petroleum 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 Pakistan or other stocks. Alpha measures the amount that position in Pakistan Petroleum 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 Pakistan Petroleum 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, Pakistan Petroleum's short interest history, or implied volatility extrapolated from Pakistan Petroleum options trading.
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Additional Tools for Pakistan Stock Analysis
When running Pakistan Petroleum's price analysis, check to measure Pakistan Petroleum's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pakistan Petroleum is operating at the current time. Most of Pakistan Petroleum's value examination focuses on studying past and present price action to predict the probability of Pakistan Petroleum's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pakistan Petroleum's price. Additionally, you may evaluate how the addition of Pakistan Petroleum to your portfolios can decrease your overall portfolio volatility.