Preferred Bank (Germany) Alpha and Beta Analysis
| 1IU Stock | EUR 83.00 0.50 0.61% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Preferred Bank. It also helps investors analyze the systematic and unsystematic risks associated with investing in Preferred Bank over a specified time horizon. Remember, high Preferred Bank'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 Preferred Bank's market risk premium analysis include:
Beta 0.19 | Alpha 0.27 | Risk 2.62 | Sharpe Ratio 0.0983 | Expected Return 0.26 |
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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Preferred Bank Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Preferred Bank market risk premium is the additional return an investor will receive from holding Preferred Bank 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 Preferred Bank. 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 Preferred Bank's performance over market.| α | 0.27 | β | 0.19 |
Preferred Bank 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 Preferred Bank's Buy-and-hold return. Our buy-and-hold chart shows how Preferred Bank performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Preferred Bank Market Price Analysis
Market price analysis indicators help investors to evaluate how Preferred Bank stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Preferred Bank shares will generate the highest return on investment. By understating and applying Preferred Bank stock market price indicators, traders can identify Preferred Bank position entry and exit signals to maximize returns.
Preferred Bank Return and Market Media
The median price of Preferred Bank for the period between Tue, Oct 8, 2024 and Mon, Jan 6, 2025 is 82.5 with a coefficient of variation of 8.3. The daily time series for the period is distributed with a sample standard deviation of 6.82, arithmetic mean of 82.07, and mean deviation of 6.05. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Preferred Bank 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 Preferred or other stocks. Alpha measures the amount that position in Preferred Bank 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 Preferred Bank 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, Preferred Bank's short interest history, or implied volatility extrapolated from Preferred Bank options trading.
Build Portfolio with Preferred Bank
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Additional Information and Resources on Investing in Preferred Stock
When determining whether Preferred Bank offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Preferred Bank'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 Preferred Bank Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Preferred Bank Stock:Check out Preferred Bank Backtesting, Preferred Bank Valuation, Preferred Bank Correlation, Preferred Bank Hype Analysis, Preferred Bank Volatility, Preferred Bank History and analyze Preferred Bank Performance. For more detail on how to invest in Preferred Stock please use our How to Invest in Preferred Bank guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Preferred Bank 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.