El Al (Israel) Alpha and Beta Analysis

ELAL Stock   659.40  18.60  2.74%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as El Al Israel. It also helps investors analyze the systematic and unsystematic risks associated with investing in El Al over a specified time horizon. Remember, high El Al'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 El Al's market risk premium analysis include:
Beta
(0.47)
Alpha
0.54
Risk
3.85
Sharpe Ratio
0.045
Expected Return
0.17
Please note that although El Al 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, El Al did 0.54  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 El Al Israel stock's relative risk over its benchmark. El Al Israel has a beta of 0.47  . As returns on the market increase, returns on owning El Al are expected to decrease at a much lower rate. During the bear market, El Al is likely to outperform the market. .
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 El Al Backtesting, El Al Valuation, El Al Correlation, El Al Hype Analysis, El Al Volatility, El Al History and analyze El Al Performance.

El Al Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. El Al market risk premium is the additional return an investor will receive from holding El Al 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 El Al. 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 El Al's performance over market.
α0.54   β-0.47

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

El Al Market Price Analysis

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

El Al Return and Market Media

The median price of El Al for the period between Fri, Sep 6, 2024 and Thu, Dec 5, 2024 is 648.6 with a coefficient of variation of 14.17. The daily time series for the period is distributed with a sample standard deviation of 94.43, arithmetic mean of 666.44, and mean deviation of 81.21. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

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

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Other Information on Investing in ELAL Stock

El Al financial ratios help investors to determine whether ELAL 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 ELAL with respect to the benefits of owning El Al security.