Archer Daniels (Germany) Alpha and Beta Analysis

ADM Stock  EUR 49.30  2.44  4.72%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Archer Daniels Midland. It also helps investors analyze the systematic and unsystematic risks associated with investing in Archer Daniels over a specified time horizon. Remember, high Archer Daniels' 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 Archer Daniels' market risk premium analysis include:
Beta
0.23
Alpha
(0.09)
Risk
1.62
Sharpe Ratio
(0.05)
Expected Return
(0.08)
Please note that although Archer Daniels 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, Archer Daniels did 0.09  worse 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 Archer Daniels Midland stock's relative risk over its benchmark. Archer Daniels Midland has a beta of 0.23  . As returns on the market increase, Archer Daniels' returns are expected to increase less than the market. However, during the bear market, the loss of holding Archer Daniels is expected to be smaller as well. .
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 Archer Daniels Backtesting, Archer Daniels Valuation, Archer Daniels Correlation, Archer Daniels Hype Analysis, Archer Daniels Volatility, Archer Daniels History and analyze Archer Daniels Performance.

Archer Daniels Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Archer Daniels market risk premium is the additional return an investor will receive from holding Archer Daniels 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 Archer Daniels. 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 Archer Daniels' performance over market.
α-0.09   β0.23

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

Archer Daniels Market Price Analysis

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

Archer Daniels Return and Market Media

The median price of Archer Daniels for the period between Thu, Sep 5, 2024 and Wed, Dec 4, 2024 is 51.87 with a coefficient of variation of 3.73. The daily time series for the period is distributed with a sample standard deviation of 1.93, arithmetic mean of 51.77, and mean deviation of 1.52. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Archer Daniels 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 Archer or other stocks. Alpha measures the amount that position in Archer Daniels Midland 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 Archer Daniels 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, Archer Daniels' short interest history, or implied volatility extrapolated from Archer Daniels options trading.

Build Portfolio with Archer Daniels

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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Additional Information and Resources on Investing in Archer Stock

When determining whether Archer Daniels Midland is a strong investment it is important to analyze Archer Daniels' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Archer Daniels' future performance. For an informed investment choice regarding Archer Stock, refer to the following important reports:
Check out Archer Daniels Backtesting, Archer Daniels Valuation, Archer Daniels Correlation, Archer Daniels Hype Analysis, Archer Daniels Volatility, Archer Daniels History and analyze Archer Daniels Performance.
You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Archer Daniels 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.
A focus of Archer Daniels technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Archer Daniels trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...