BHP Group (South Africa) Alpha and Beta Analysis
| BHG Stock | 45,700 179.00 0.39% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as BHP Group Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in BHP Group over a specified time horizon. Remember, high BHP Group'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 BHP Group's market risk premium analysis include:
Beta 0.0378 | Alpha (0.09) | Risk 1.44 | Sharpe Ratio (0.08) | Expected Return (0.12) |
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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BHP Group Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. BHP Group market risk premium is the additional return an investor will receive from holding BHP Group 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 BHP Group. 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 BHP Group's performance over market.| α | -0.09 | β | 0.04 |
BHP Group 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 BHP Group's Buy-and-hold return. Our buy-and-hold chart shows how BHP Group performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.BHP Group Market Price Analysis
Market price analysis indicators help investors to evaluate how BHP Group stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading BHP Group shares will generate the highest return on investment. By understating and applying BHP Group stock market price indicators, traders can identify BHP Group position entry and exit signals to maximize returns.
BHP Group Return and Market Media
The median price of BHP Group for the period between Wed, Sep 25, 2024 and Tue, Dec 24, 2024 is 48600.0 with a coefficient of variation of 4.69. The daily time series for the period is distributed with a sample standard deviation of 2295.92, arithmetic mean of 48992.83, and mean deviation of 1931.7. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About BHP Group 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 BHP or other stocks. Alpha measures the amount that position in BHP Group Limited 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 BHP Group 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, BHP Group's short interest history, or implied volatility extrapolated from BHP Group options trading.
Build Portfolio with BHP Group
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Additional Information and Resources on Investing in BHP Stock
When determining whether BHP Group Limited is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if BHP Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Bhp Group Limited Stock. Highlighted below are key reports to facilitate an investment decision about Bhp Group Limited Stock:Check out BHP Group Backtesting, BHP Group Valuation, BHP Group Correlation, BHP Group Hype Analysis, BHP Group Volatility, BHP Group History and analyze BHP Group Performance. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
BHP Group 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.