Estée Lauder (Germany) Alpha and Beta Analysis
| ELAA Stock | EUR 70.80 1.20 1.67% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as The Este Lauder. It also helps investors analyze the systematic and unsystematic risks associated with investing in Estée Lauder over a specified time horizon. Remember, high Estée Lauder'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 Estée Lauder's market risk premium analysis include:
Beta (1.29) | Alpha (0.24) | Risk 3.67 | Sharpe Ratio (0.07) | Expected Return (0.26) |
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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Estée Lauder Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Estée Lauder market risk premium is the additional return an investor will receive from holding Estée Lauder 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 Estée Lauder. 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 Estée Lauder's performance over market.| α | -0.24 | β | -1.29 |
Estée Lauder 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 Estée Lauder's Buy-and-hold return. Our buy-and-hold chart shows how Estée Lauder performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Estée Lauder Market Price Analysis
Market price analysis indicators help investors to evaluate how Estée Lauder stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Estée Lauder shares will generate the highest return on investment. By understating and applying Estée Lauder stock market price indicators, traders can identify Estée Lauder position entry and exit signals to maximize returns.
Estée Lauder Return and Market Media
The median price of Estée Lauder for the period between Sat, Oct 12, 2024 and Fri, Jan 10, 2025 is 73.0 with a coefficient of variation of 12.3. The daily time series for the period is distributed with a sample standard deviation of 9.03, arithmetic mean of 73.37, and mean deviation of 7.61. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Estée Lauder 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 Estée or other stocks. Alpha measures the amount that position in Estée Lauder 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 Estée Lauder 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, Estée Lauder's short interest history, or implied volatility extrapolated from Estée Lauder options trading.
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Other Information on Investing in Estée Stock
Estée Lauder financial ratios help investors to determine whether Estée 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 Estée with respect to the benefits of owning Estée Lauder security.