Honeywell International (Germany) Alpha and Beta Analysis

ALD Stock  EUR 220.00  2.55  1.17%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Honeywell International. It also helps investors analyze the systematic and unsystematic risks associated with investing in Honeywell International over a specified time horizon. Remember, high Honeywell International'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 Honeywell International's market risk premium analysis include:
Beta
0.6
Alpha
0.3
Risk
1.68
Sharpe Ratio
0.18
Expected Return
0.31
Please note that although Honeywell International 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, Honeywell International did 0.30  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 Honeywell International stock's relative risk over its benchmark. Honeywell International has a beta of 0.60  . As returns on the market increase, Honeywell International's returns are expected to increase less than the market. However, during the bear market, the loss of holding Honeywell International 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 Honeywell International Backtesting, Honeywell International Valuation, Honeywell International Correlation, Honeywell International Hype Analysis, Honeywell International Volatility, Honeywell International History and analyze Honeywell International Performance.
For more detail on how to invest in Honeywell Stock please use our How to Invest in Honeywell International guide.

Honeywell International Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Honeywell International market risk premium is the additional return an investor will receive from holding Honeywell International 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 Honeywell International. 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 Honeywell International's performance over market.
α0.30   β0.60

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

Honeywell International Market Price Analysis

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

Honeywell International Return and Market Media

The median price of Honeywell International for the period between Mon, Sep 23, 2024 and Sun, Dec 22, 2024 is 201.91 with a coefficient of variation of 7.08. The daily time series for the period is distributed with a sample standard deviation of 14.34, arithmetic mean of 202.73, and mean deviation of 13.0. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

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

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Additional Information and Resources on Investing in Honeywell Stock

When determining whether Honeywell International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Honeywell International'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 Honeywell International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Honeywell International Stock:
Check out Honeywell International Backtesting, Honeywell International Valuation, Honeywell International Correlation, Honeywell International Hype Analysis, Honeywell International Volatility, Honeywell International History and analyze Honeywell International Performance.
For more detail on how to invest in Honeywell Stock please use our How to Invest in Honeywell International guide.
You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Honeywell International 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 Honeywell International technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Honeywell International 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...