Sofr Etf Alpha and Beta Analysis
| SOFR Etf | 100.50 0.07 0.07% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as SOFR. It also helps investors analyze the systematic and unsystematic risks associated with investing in SOFR over a specified time horizon. Remember, high SOFR'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 SOFR's market risk premium analysis include:
Beta 0.0057 | Alpha 0.007319 | Risk 0.0357 | Sharpe Ratio 0.49 | Expected Return 0.0175 |
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.
SOFR |
SOFR Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. SOFR market risk premium is the additional return an investor will receive from holding SOFR 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 SOFR. 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 SOFR's performance over market.| α | 0.01 | β | 0.01 |
SOFR 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 SOFR's Buy-and-hold return. Our buy-and-hold chart shows how SOFR performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.SOFR Market Price Analysis
Market price analysis indicators help investors to evaluate how SOFR etf reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading SOFR shares will generate the highest return on investment. By understating and applying SOFR etf market price indicators, traders can identify SOFR position entry and exit signals to maximize returns.
SOFR Return and Market Media
The median price of SOFR for the period between Sun, Sep 22, 2024 and Sat, Dec 21, 2024 is 99.85 with a coefficient of variation of 0.33. The daily time series for the period is distributed with a sample standard deviation of 0.33, arithmetic mean of 99.87, and mean deviation of 0.29. The Etf received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
| SOFR dividend paid on 30th of September 2024 | 09/30/2024 |
1 | US Funding-Market Volatility Fuels Spike in Key SOFR Benchmark | 10/01/2024 |
2 | U.S. Treasury Yields Rise Amid Weakened Rate Cut Expectations | 10/09/2024 |
| SOFR dividend paid on 31st of October 2024 | 10/31/2024 |
3 | CME Has Record October ADV in US Treasury, SOFR Complexes - Markets Media | 11/05/2024 |
4 | 9 of the Best Bond ETFs to Buy for 2025 - MSN | 12/05/2024 |
About SOFR 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 SOFR or other etfs. Alpha measures the amount that position in SOFR 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 SOFR 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, SOFR's short interest history, or implied volatility extrapolated from SOFR options trading.
Build Portfolio with SOFR
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Other Information on Investing in SOFR Etf
SOFR financial ratios help investors to determine whether SOFR Etf 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 SOFR with respect to the benefits of owning SOFR security.