Tata Steel (India) Alpha and Beta Analysis
| TATASTEEL | 151.81 0.93 0.62% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Tata Steel Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Tata Steel over a specified time horizon. Remember, high Tata Steel'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 Tata Steel's market risk premium analysis include:
Beta 0.0121 | Alpha 0.0187 | Risk 1.83 | Sharpe Ratio 0.0461 | Expected Return 0.0844 |
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.
Tata |
Tata Steel Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Tata Steel market risk premium is the additional return an investor will receive from holding Tata Steel 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 Tata Steel. 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 Tata Steel's performance over market.| α | 0.02 | β | 0.01 |
Tata Steel 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 Tata Steel's Buy-and-hold return. Our buy-and-hold chart shows how Tata Steel performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Tata Steel Market Price Analysis
Market price analysis indicators help investors to evaluate how Tata Steel stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Tata Steel shares will generate the highest return on investment. By understating and applying Tata Steel stock market price indicators, traders can identify Tata Steel position entry and exit signals to maximize returns.
Tata Steel Return and Market Media
The median price of Tata Steel for the period between Tue, Dec 17, 2024 and Mon, Mar 17, 2025 is 137.07 with a coefficient of variation of 5.6. The daily time series for the period is distributed with a sample standard deviation of 7.7, arithmetic mean of 137.54, and mean deviation of 6.27. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Tata Steel Share Price Highlights Tata Steel closed today at 122.95, down -3.49 percent from yesterdays 127.4 Stock Market News - Mint | 01/13/2025 |
2 | Tata Steel Share Price Highlights Tata Steel closed today at 130.3, up 1.96 percent from yesterdays 127.8 Stock Market News - Mint | 01/17/2025 |
3 | CLSA raises Tata Steel stock rating to hold, cuts target to INR125 - Investing.com | 01/28/2025 |
4 | Tata Steel Share Price Highlights Tata Steel closed today at 134.40, up 0.75 percent from yesterdays 133.40 Stock Market News - Mint | 02/05/2025 |
5 | Tata Steel Share Price Highlights Tata Steel closed today at 134.40, down -1.32 percent from yesterdays 136.20 Stock Market News - Mint | 02/14/2025 |
6 | Tata Steel Acquires Shares Worth Rs 10,727 Crore In T Steel Holdings - NDTV Profit | 02/25/2025 |
7 | Tata Steel Share Price Target From 2025 to 2030 - Pucketts Farm | 03/05/2025 |
8 | 4 key reasons why Jefferies remains positive on metals with Tata Steel, Hindalco as its top picks - Mint | 03/10/2025 |
About Tata Steel 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 Tata or other stocks. Alpha measures the amount that position in Tata Steel Limited 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 Tata Steel 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, Tata Steel's short interest history, or implied volatility extrapolated from Tata Steel options trading.
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Other Information on Investing in Tata Stock
Tata Steel financial ratios help investors to determine whether Tata 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 Tata with respect to the benefits of owning Tata Steel security.