Lar Espana (Spain) Alpha and Beta Analysis

LRE Stock  EUR 8.29  0.01  0.12%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Lar Espana Real. It also helps investors analyze the systematic and unsystematic risks associated with investing in Lar Espana over a specified time horizon. Remember, high Lar Espana'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 Lar Espana's market risk premium analysis include:
Beta
(0.05)
Alpha
0.004938
Risk
0.83
Sharpe Ratio
0.0153
Expected Return
0.0127
Please note that although Lar Espana 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, Lar Espana did 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 Lar Espana Real stock's relative risk over its benchmark. Lar Espana Real has a beta of 0.05  . As returns on the market increase, returns on owning Lar Espana are expected to decrease at a much lower rate. During the bear market, Lar Espana 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 Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Lar Espana Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Lar Espana market risk premium is the additional return an investor will receive from holding Lar Espana 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 Lar Espana. 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 Lar Espana's performance over market.
α0   β-0.05

Lar Espana Fundamentals Vs Peers

Comparing Lar Espana's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lar Espana's direct or indirect competition across all of the common fundamentals between Lar Espana and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lar Espana or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lar Espana's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lar Espana by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Lar Espana to competition
FundamentalsLar EspanaPeer Average
Return On Equity0.0848-0.31
Return On Asset0.0206-0.14
Profit Margin0.96 %(1.27) %
Operating Margin0.71 %(5.51) %
Current Valuation944.26 M16.62 B
Shares Outstanding83.58 M571.82 M
Shares Owned By Insiders40.94 %10.09 %

Lar Espana Opportunities

Lar Espana Return and Market Media

The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Lar Espana 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 Lar or other stocks. Alpha measures the amount that position in Lar Espana Real 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 Lar Espana 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, Lar Espana's short interest history, or implied volatility extrapolated from Lar Espana options trading.

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Other Information on Investing in Lar Stock

Lar Espana financial ratios help investors to determine whether Lar 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 Lar with respect to the benefits of owning Lar Espana security.