Beta measures anasset’s historic volatilityrelative to an underlying benchmark index. Take the example of a stock listed on the Singapore Exchange with a beta value of 1.2. This means that based on past data, the stock is 20% more volatile than the underlying benchmark index. So, if the...
Alpha and beta are two of the key measurements used to evaluate the performance of a stock, a fund, or an investment portfolio. Alpha measures the amount that the investment has returned in comparison to the market index or other broad benchmark that it is compared against. Beta measures the...
We often hear the terms alpha and beta when talking about investments. These are two different measures that are part of the same equation derived from a linear regression. Don't worry if that sounds complicated, we'll explain it all in this article. Key Takeaways Alpha and beta are two ...
See full terms and conditions at rbnhd.co/freestock. Securities trading is offered through Robinhood Financial LLC. Futures trading offered through Robinhood Derivatives, LLC. Tell me more… What is alpha? What is alpha vs. beta? What do positive and negative alpha mean? How do you calculate...
While a stock's beta measures its volatility, it does not necessarily predict direction. A stock that performs 50% worse than the S&P 500 in a down market and a stock that performs 50% better than the S&P 500 in an up market will each have a high beta. Therefore, beta is best used...
This finding showed that we are inherently loss averse and is in essence the basis of Tversky and Kahnemans Prospect Theory. As the options market is fairly new, and still developing in terms of various pricing models, we thought it would be interesting to test whether the predictable loss ...
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Stock.Essential Properties Realty EPRTStockUSD31.670.180.57% This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Essential Properties Realty. It also helps investors analyze the systematic andunsystematic risksassociated with investing ...
Alpha vs. beta: What’s the difference? Alpha and beta are two Greek letters that get used a lot in investing, but their meanings can be misunderstood. Alphais generally used to measure how much an investment outperformed its benchmark. Fund managers conduct deep research on companies and oth...
TTGT Stock USD 19.82 0.27 1.34% This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as TechTarget, Common Stock. It also helps investors analyze the systematic and unsystematic risks associated with investing in TechTarget, Common...