Prospect Capital Stock Alpha and Beta Analysis

PSEC Stock  USD 5.49  0.03  0.55%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Prospect Capital. It also helps investors analyze the systematic and unsystematic risks associated with investing in Prospect Capital over a specified time horizon. Remember, high Prospect Capital's 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 Prospect Capital's market risk premium analysis include:
Beta
0.98
Alpha
(0.22)
Risk
1.67
Sharpe Ratio
(0.05)
Expected Return
(0.08)
Please note that although Prospect Capital alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, Prospect Capital did 0.22  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Prospect Capital stock's relative risk over its benchmark. Prospect Capital has a beta of 0.98  . Prospect Capital returns are very sensitive to returns on the market. As the market goes up or down, Prospect Capital is expected to follow. As of March 28, 2024, Price Book Value Ratio is expected to decline to 0.87. The current year's Enterprise Value Multiple is expected to grow to -57.8.
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.
  
Check out Prospect Capital Backtesting, Prospect Capital Valuation, Prospect Capital Correlation, Prospect Capital Hype Analysis, Prospect Capital Volatility, Prospect Capital History and analyze Prospect Capital Performance.
For information on how to trade Prospect Stock refer to our How to Trade Prospect Stock guide.

Prospect Capital Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Prospect Capital market risk premium is the additional return an investor will receive from holding Prospect Capital 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 Prospect Capital. 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 Prospect Capital's performance over market.
α-0.22   β0.98

Prospect Capital 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 Prospect Capital's Buy-and-hold return. Our buy-and-hold chart shows how Prospect Capital performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Prospect Capital Market Price Analysis

Market price analysis indicators help investors to evaluate how Prospect Capital stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Prospect Capital shares will generate the highest return on investment. By understating and applying Prospect Capital stock market price indicators, traders can identify Prospect Capital position entry and exit signals to maximize returns.

Prospect Capital Return and Market Media

The median price of Prospect Capital for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 5.69 with a coefficient of variation of 4.16. The daily time series for the period is distributed with a sample standard deviation of 0.24, arithmetic mean of 5.67, and mean deviation of 0.21. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
 
Prospect Capital dividend paid on 18th of January 2024
01/18/2024
1
Quiz of 3 - 9 February
02/09/2024
 
Prospect Capital dividend paid on 20th of February 2024
02/20/2024
2
Obituary Robert Bob Montambault, Of Milford
02/21/2024
3
Jeanne Grunert, Award-Winning Writer and Marketing Expert, Appointed to Second Term as NAIWE Expert Panel Member
03/04/2024
4
Republic Bank named to Newsweeks Americas Best Regional Banks and Credit Unions 2024
03/05/2024
5
Orion and CAIS Join Forces to Expand Alts Access for Advisors
03/07/2024
6
Elmhurst Store Makes Illegal Sale Police
03/12/2024
7
Visualizing Wealth Transfer Orion Introduces Innovative Estate Planning Tool for Advisors to Support the 72 Trillion Multi-Generational Asset Transfer
03/14/2024
8
Acquisition by John Barry of 4610490 shares of Prospect Capital at 4.7732 subject to Rule 16b-3
03/18/2024
 
Prospect Capital dividend paid on 20th of March 2024
03/20/2024
9
Obituary Amanda Van Fleet, 33 Formerly Of Wallingford
03/21/2024
10
Yale New Havens application to buy three hospitals approved by CT state office
03/27/2024

About Prospect Capital 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 Prospect or other stocks. Alpha measures the amount that position in Prospect Capital 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.
 2021 2023 2024 (projected)
Dividend Yield0.09330.09340.08
Price To Sales Ratio4.653.042.89

Prospect Capital Upcoming Company Events

As portrayed in its financial statements, the presentation of Prospect Capital's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Prospect Capital's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Prospect Capital's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Prospect Capital. Please utilize our Beneish M Score to check the likelihood of Prospect Capital's management manipulating its earnings.
14th of February 2024
Upcoming Quarterly Report
View
14th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
3rd of September 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
30th of June 2023
Last Financial Announcement
View

Build Portfolio with Prospect Capital

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
When determining whether Prospect Capital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Prospect Capital's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Prospect Capital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Prospect Capital Stock:
Check out Prospect Capital Backtesting, Prospect Capital Valuation, Prospect Capital Correlation, Prospect Capital Hype Analysis, Prospect Capital Volatility, Prospect Capital History and analyze Prospect Capital Performance.
For information on how to trade Prospect Stock refer to our How to Trade Prospect Stock guide.
Note that the Prospect Capital information on this page should be used as a complementary analysis to other Prospect Capital's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.

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When running Prospect Capital's price analysis, check to measure Prospect Capital's 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 Prospect Capital is operating at the current time. Most of Prospect Capital's value examination focuses on studying past and present price action to predict the probability of Prospect Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prospect Capital's price. Additionally, you may evaluate how the addition of Prospect Capital to your portfolios can decrease your overall portfolio volatility.
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Prospect Capital 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.
A focus of Prospect Capital technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Prospect Capital trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...