Davidson Multi Cap Equity Fund Alpha and Beta Analysis
| DFMAX Fund | USD 35.31 0.08 0.23% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Davidson Multi Cap Equity. It also helps investors analyze the systematic and unsystematic risks associated with investing in Davidson Multi-cap over a specified time horizon. Remember, high Davidson Multi-cap'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 Davidson Multi-cap's market risk premium analysis include:
Beta 0.85 | Alpha (0.01) | Risk 0.69 | Sharpe Ratio 0.16 | Expected Return 0.11 |
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.
Davidson |
Davidson Multi-cap Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Davidson Multi-cap market risk premium is the additional return an investor will receive from holding Davidson Multi-cap 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 Davidson Multi-cap. 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 Davidson Multi-cap's performance over market.| α | -0.01 | β | 0.85 |
Davidson Multi-cap 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 Davidson Multi-cap's Buy-and-hold return. Our buy-and-hold chart shows how Davidson Multi-cap performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Davidson Multi-cap Market Price Analysis
Market price analysis indicators help investors to evaluate how Davidson Multi-cap mutual fund reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Davidson Multi-cap shares will generate the highest return on investment. By understating and applying Davidson Multi-cap mutual fund market price indicators, traders can identify Davidson Multi-cap position entry and exit signals to maximize returns.
Davidson Multi-cap Return and Market Media
The median price of Davidson Multi-cap for the period between Sat, Aug 31, 2024 and Fri, Nov 29, 2024 is 33.92 with a coefficient of variation of 2.17. The daily time series for the period is distributed with a sample standard deviation of 0.74, arithmetic mean of 33.94, and mean deviation of 0.57. The Fund did not receive any noticable media coverage during the period. Price Growth (%) |
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About Davidson Multi-cap 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 Davidson or other funds. Alpha measures the amount that position in Davidson Multi Cap 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 Davidson Multi-cap 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, Davidson Multi-cap's short interest history, or implied volatility extrapolated from Davidson Multi-cap options trading.
Build Portfolio with Davidson Multi-cap
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.Build Diversified Portfolios
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Other Information on Investing in Davidson Mutual Fund
Davidson Multi-cap financial ratios help investors to determine whether Davidson Mutual Fund 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 Davidson with respect to the benefits of owning Davidson Multi-cap security.
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