Southwest Airlines (Mexico) Alpha and Beta Analysis
| LUV Stock | MXN 463.00 1.29 0.28% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Southwest Airlines. It also helps investors analyze the systematic and unsystematic risks associated with investing in Southwest Airlines over a specified time horizon. Remember, high Southwest Airlines' 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 Southwest Airlines' market risk premium analysis include:
Beta 0.0371 | Alpha (0.29) | Risk 2.33 | Sharpe Ratio (0.04) | Expected Return (0.1) |
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.
Southwest |
Southwest Airlines Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Southwest Airlines market risk premium is the additional return an investor will receive from holding Southwest Airlines 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 Southwest Airlines. 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 Southwest Airlines' performance over market.| α | -0.29 | β | 0.04 |
Southwest Airlines 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 Southwest Airlines' Buy-and-hold return. Our buy-and-hold chart shows how Southwest Airlines performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Southwest Airlines Market Price Analysis
Market price analysis indicators help investors to evaluate how Southwest Airlines stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Southwest Airlines shares will generate the highest return on investment. By understating and applying Southwest Airlines stock market price indicators, traders can identify Southwest Airlines position entry and exit signals to maximize returns.
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| Belt hold | ||
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Southwest Airlines Return and Market Media
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About Southwest Airlines 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 Southwest or other stocks. Alpha measures the amount that position in Southwest Airlines 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 Southwest Airlines 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, Southwest Airlines' short interest history, or implied volatility extrapolated from Southwest Airlines options trading.
Build Portfolio with Southwest Airlines
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Southwest Airlines Backtesting, Southwest Airlines Valuation, Southwest Airlines Correlation, Southwest Airlines Hype Analysis, Southwest Airlines Volatility, Southwest Airlines History and analyze Southwest Airlines Performance. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Southwest Stock analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.
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Southwest Airlines technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.