Prudential Jennison Growth Fund Alpha and Beta Analysis

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Prudential Jennison Growth. It also helps investors analyze the systematic and unsystematic risks associated with investing in Prudential Jennison over a specified time horizon. Remember, high Prudential Jennison'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 Prudential Jennison's market risk premium analysis include:
Beta
1.12
Alpha
(0.04)
Risk
1.44
Sharpe Ratio
0.0796
Expected Return
0.11
Please note that although Prudential Jennison 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, Prudential Jennison did 0.04  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 Prudential Jennison Growth fund's relative risk over its benchmark. Prudential Jennison has a beta of 1.12  . Prudential Jennison returns are very sensitive to returns on the market. As the market goes up or down, Prudential Jennison is expected to follow. .
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 Your Equity Center to better understand how to build diversified portfolios. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in nation.

Prudential Jennison Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Prudential Jennison market risk premium is the additional return an investor will receive from holding Prudential Jennison 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 Prudential Jennison. 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 Prudential Jennison's performance over market.
α-0.04   β1.12
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 Prudential Jennison 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, Prudential Jennison's short interest history, or implied volatility extrapolated from Prudential Jennison options trading.

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Other Tools for Prudential Mutual Fund

When running Prudential Jennison's price analysis, check to measure Prudential Jennison's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Prudential Jennison is operating at the current time. Most of Prudential Jennison's value examination focuses on studying past and present price action to predict the probability of Prudential Jennison's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prudential Jennison's price. Additionally, you may evaluate how the addition of Prudential Jennison to your portfolios can decrease your overall portfolio volatility.
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