Relative Risk vs. Return Landscape
If you would invest 1,456
in Western Alliance Bancorporation on April 25, 2013
and sell it today you would lose (25.00)
from holding Western Alliance Bancorporation or give up 1.72%
of portfolio value over 30
days. Western Alliance Bancorporation is generating negative expected returns assuming volatility of 1.55%
on return distribution over 30 days investment horizon. In other words, 20% of equities are less volatile than the company and above 99% of equities are expected to generate higher returns over the next 30 days.
Daily Expected Return (%)
Considering 30-days investment horizon, Western Alliance Bancorporation is expected to under-perform the market. In addition to that, the company is 2.72 times more volatile than its market benchmark. It trades about -0.07 of its total potential returns per unit of risk. The S&P 500 is currently generating roughly 0.32 per unit of volatility.
Western Operating Margin
Based on recorded statements Western Alliance Bancorporation has Operating Margin of 42.52%. This is 86.16% higher than that of Financial sector, and 110.7% higher than that of Regional - Pacific Banks
industry, The Operating Margin for all stocks is 1268.13% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
Western Return On Equity vs Return On Asset
Western Alliance Bancorporation is rated fifth
in return on equity category among related companies. It is rated below average
in return on asset category among related companies reporting about 0.09
of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Western Alliance Bancorporation is roughly 10.54