European risk analysis

Use European Aeronautic Defence and Space Company EADS NV (#NL0000235190DE) risk analysis together with your stock portfolios to enhance returns of your portfolios and to determine Stock optimization strategy that fits your criteria.  Suggest Portfolio

Projected Return Density against Market

Assuming 30 trading days horizon, European has beta of 0.77 suggesting as returns on market go up, European avarage returns are expected to increase less than the benchmark. However during bear market, the loss on holding European Aeronautic Defence and Space Company EADS NV will be expected to be much smaller as well. Moreover, European Aeronautic Defence and Space Company EADS NV has alpha of 0.77 implying that it can potentially generate 0.77% excess return over S&P 500 after adjusting for the inherited market risk (beta).Assuming 30 trading days horizon, the coefficient of variation of European is 771.34. The daily returns are destributed with a variance of 1.47 and standard deviation of 1.21. The mean deviation of European Aeronautic Defence and Space Company EADS NV is currently at 0.86. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.58

	(alpha)	=	0.77	Details
	(beta)	=	0.77	Details
	(volatility)	=	1.21	Details

Actual Return Volatility

European Aeronautic Defence and Space Company EADS NV assumes 1.21% volatility of returns over the 30 days investment horizon. S&P 500 shows 0.57% volatility of returns over 30 trading days.