Principal Financial (Germany) Alpha and Beta Analysis
| PG4 Stock | EUR 72.00 1.50 2.04% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Principal Financial Group. It also helps investors analyze the systematic and unsystematic risks associated with investing in Principal Financial over a specified time horizon. Remember, high Principal Financial'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 Principal Financial's market risk premium analysis include:
Beta 0.34 | Alpha (0.06) | Risk 1.91 | Sharpe Ratio (0.04) | Expected Return (0.07) |
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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Principal Financial Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Principal Financial market risk premium is the additional return an investor will receive from holding Principal Financial 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 Principal Financial. 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 Principal Financial's performance over market.| α | -0.06 | β | 0.34 |
Principal Financial 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 Principal Financial's Buy-and-hold return. Our buy-and-hold chart shows how Principal Financial performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Principal Financial Market Price Analysis
Market price analysis indicators help investors to evaluate how Principal Financial stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Principal Financial shares will generate the highest return on investment. By understating and applying Principal Financial stock market price indicators, traders can identify Principal Financial position entry and exit signals to maximize returns.
Principal Financial Return and Market Media
The median price of Principal Financial for the period between Mon, Sep 23, 2024 and Sun, Dec 22, 2024 is 78.5 with a coefficient of variation of 3.75. The daily time series for the period is distributed with a sample standard deviation of 2.94, arithmetic mean of 78.29, and mean deviation of 2.57. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Principal Financial 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 Principal or other stocks. Alpha measures the amount that position in Principal Financial 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 Principal Financial 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, Principal Financial's short interest history, or implied volatility extrapolated from Principal Financial options trading.
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Additional Information and Resources on Investing in Principal Stock
When determining whether Principal Financial is a strong investment it is important to analyze Principal Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Principal Financial's future performance. For an informed investment choice regarding Principal Stock, refer to the following important reports:Check out Principal Financial Backtesting, Principal Financial Valuation, Principal Financial Correlation, Principal Financial Hype Analysis, Principal Financial Volatility, Principal Financial History and analyze Principal Financial Performance. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Principal Financial 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.