Mercedes Benz (Germany) Alpha and Beta Analysis
| MBG Stock | EUR 55.76 0.26 0.47% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Mercedes Benz Group AG. It also helps investors analyze the systematic and unsystematic risks associated with investing in Mercedes Benz over a specified time horizon. Remember, high Mercedes Benz'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 Mercedes Benz's market risk premium analysis include:
Beta (0.60) | Alpha 0.0769 | Risk 1.53 | Sharpe Ratio (0.01) | Expected Return (0.02) |
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.
Mercedes |
Mercedes Benz Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Mercedes Benz market risk premium is the additional return an investor will receive from holding Mercedes Benz 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 Mercedes Benz. 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 Mercedes Benz's performance over market.| α | 0.08 | β | -0.6 |
Mercedes Benz 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 Mercedes Benz's Buy-and-hold return. Our buy-and-hold chart shows how Mercedes Benz performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Mercedes Benz Market Price Analysis
Market price analysis indicators help investors to evaluate how Mercedes Benz stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Mercedes Benz shares will generate the highest return on investment. By understating and applying Mercedes Benz stock market price indicators, traders can identify Mercedes Benz position entry and exit signals to maximize returns.
Mercedes Benz Return and Market Media
The median price of Mercedes Benz for the period between Fri, Sep 13, 2024 and Thu, Dec 12, 2024 is 56.06 with a coefficient of variation of 3.94. The daily time series for the period is distributed with a sample standard deviation of 2.18, arithmetic mean of 55.39, and mean deviation of 1.94. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About Mercedes Benz 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 Mercedes or other stocks. Alpha measures the amount that position in Mercedes Benz Group 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 Mercedes Benz 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, Mercedes Benz's short interest history, or implied volatility extrapolated from Mercedes Benz options trading.
Build Portfolio with Mercedes Benz
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
Other Information on Investing in Mercedes Stock
Mercedes Benz financial ratios help investors to determine whether Mercedes 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 Mercedes with respect to the benefits of owning Mercedes Benz security.