We consider Alphabet not too risky. Alphabet Inc secures Sharpe Ratio (or Efficiency) of 0.0678 which signifies that Alphabet Inc had 0.0678% of return per unit of risk over the last 1 month. Our philosophy towards foreseeing volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Alphabet Inc which you can use to evaluate future volatility of the firm. Please confirm Alphabet Inc Downside Deviation of 1.47, Risk Adjusted Performance of 0.0294 and Mean Deviation of 0.9618 to double-check if risk estimate we provide are consistent with the epected return of 0.0815%.
|Investment Horizon||30 Days Login to change|
Alphabet Market Sensitivity
|As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Alphabet will likely underperform.One Month Beta |Analyze Alphabet Inc Demand TrendCheck current 30 days Alphabet correlation with market (DOW)|
β = 1.587
Projected Return Density Against MarketGiven the investment horizon of 30 days, the stock has beta coefficient of 1.587 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Alphabet will likely underperform. Moreover, Alphabet Inc has an alpha of 0.018 implying that it can potentially generate 0.018% excess return over DOW after adjusting for the inherited market risk (beta).
Given the investment horizon of 30 days, the coefficient of variation of Alphabet is 1475.27. The daily returns are destributed with a variance of 1.45 and standard deviation of 1.2. The mean deviation of Alphabet Inc is currently at 0.95. For similar time horizon, the selected benchmark (DOW) has volatility of 0.39