Cathay Biotech (China) Alpha and Beta Analysis
| 688065 Stock | 42.02 0.48 1.13% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Cathay Biotech. It also helps investors analyze the systematic and unsystematic risks associated with investing in Cathay Biotech over a specified time horizon. Remember, high Cathay Biotech'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 Cathay Biotech's market risk premium analysis include:
Beta (0.18) | Alpha 0.38 | Risk 4.14 | Sharpe Ratio 0.12 | Expected Return 0.49 |
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.
Cathay |
Cathay Biotech Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Cathay Biotech market risk premium is the additional return an investor will receive from holding Cathay Biotech 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 Cathay Biotech. 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 Cathay Biotech's performance over market.| α | 0.38 | β | -0.18 |
Cathay Biotech 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 Cathay Biotech's Buy-and-hold return. Our buy-and-hold chart shows how Cathay Biotech performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Cathay Biotech Market Price Analysis
Market price analysis indicators help investors to evaluate how Cathay Biotech stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cathay Biotech shares will generate the highest return on investment. By understating and applying Cathay Biotech stock market price indicators, traders can identify Cathay Biotech position entry and exit signals to maximize returns.
Cathay Biotech Return and Market Media
The median price of Cathay Biotech for the period between Sun, Sep 22, 2024 and Sat, Dec 21, 2024 is 45.35 with a coefficient of variation of 11.35. The daily time series for the period is distributed with a sample standard deviation of 5.06, arithmetic mean of 44.6, and mean deviation of 3.57. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | What Cathay Biotech Inc.s 38 percent Share Price Gain Is Not Telling You - Simply Wall St | 10/22/2024 |
2 | Cathay General Bancorp Shares Purchased by Dean Investment Associates LLC - MarketBeat | 12/09/2024 |
About Cathay Biotech 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 Cathay or other stocks. Alpha measures the amount that position in Cathay Biotech 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 Cathay Biotech 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, Cathay Biotech's short interest history, or implied volatility extrapolated from Cathay Biotech options trading.
Build Portfolio with Cathay Biotech
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Other Information on Investing in Cathay Stock
Cathay Biotech financial ratios help investors to determine whether Cathay 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 Cathay with respect to the benefits of owning Cathay Biotech security.