East West Bancorp Stock Alpha and Beta Analysis

EWBC Stock  USD 87.97  2.94  3.46%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as East West Bancorp. It also helps investors analyze the systematic and unsystematic risks associated with investing in East West over a specified time horizon. Remember, high East West'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 East West's market risk premium analysis include:
Beta
1.11
Alpha
(0.16)
Risk
1.68
Sharpe Ratio
(0.13)
Expected Return
(0.22)
Please note that although East West 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, East West did 0.16  worse 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 East West Bancorp stock's relative risk over its benchmark. East West Bancorp has a beta of 1.11  . East West returns are very sensitive to returns on the market. As the market goes up or down, East West is expected to follow. At present, East West's Price Fair Value is projected to increase slightly based on the last few years of reporting.
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 East West Backtesting, East West Valuation, East West Correlation, East West Hype Analysis, East West Volatility, East West History and analyze East West Performance.

East West Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. East West market risk premium is the additional return an investor will receive from holding East West 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 East West. 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 East West's performance over market.
α-0.16   β1.11

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

East West Market Price Analysis

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

East West Return and Market Media

The median price of East West for the period between Sat, Dec 14, 2024 and Fri, Mar 14, 2025 is 97.66 with a coefficient of variation of 5.24. The daily time series for the period is distributed with a sample standard deviation of 5.09, arithmetic mean of 97.16, and mean deviation of 4.09. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Disposition of 9780 shares by Del Moral-niles Christopher of East West subject to Rule 16b-3
12/13/2024
2
East West Bancorp GAAP EPS of 2.10 in-line
01/23/2025
3
Disposition of 725 shares by Liu Jack C of East West at 104.5 subject to Rule 16b-3
01/28/2025
4
Disposition of 1275 shares by Liu Jack C of East West at 104.53 subject to Rule 16b-3
01/30/2025
5
Keeler Thomas Management LLC Sells 1,700 Shares of East West Bancorp, Inc.
02/25/2025
6
Pacific Global Investment Management Co. Sells 3,571 Shares of East West Bancorp, Inc.
03/03/2025
7
Is Nuveen ESG Small-Cap ETF a Strong ETF Right Now
03/06/2025
8
Disposition of 20181 shares by Dominic Ng of East West at 90.01 subject to Rule 16b-3
03/07/2025

About East West 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 East or other stocks. Alpha measures the amount that position in East West Bancorp 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.
 2022 2023 2024 2025 (projected)
Dividend Yield0.02450.0270.02320.0122
Price To Sales Ratio4.024.339.6841.66

East West Upcoming Company Events

As portrayed in its financial statements, the presentation of East West's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, East West's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of East West's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of East West. Please utilize our Beneish M Score to check the likelihood of East West's management manipulating its earnings.
18th of April 2024
Upcoming Quarterly Report
View
18th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
28th of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View

Build Portfolio with East West

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

Align your risk with return expectations

By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
When determining whether East West Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of East West'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 East West Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on East West Bancorp Stock:
East West 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 East West technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of East West 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...