AvalonBay Communities (Brazil) Alpha and Beta Analysis

A1VB34 Stock  BRL 248.16  5.07  2.09%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as AvalonBay Communities. It also helps investors analyze the systematic and unsystematic risks associated with investing in AvalonBay Communities over a specified time horizon. Remember, high AvalonBay Communities' 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 AvalonBay Communities' market risk premium analysis include:
Beta
0.27
Alpha
0.14
Risk
1.13
Sharpe Ratio
0.2
Expected Return
0.23
Please note that although AvalonBay Communities 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, AvalonBay Communities did 0.14  better 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 AvalonBay Communities stock's relative risk over its benchmark. AvalonBay Communities has a beta of 0.27  . As returns on the market increase, AvalonBay Communities' returns are expected to increase less than the market. However, during the bear market, the loss of holding AvalonBay Communities is expected to be smaller as well. .
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 AvalonBay Communities Backtesting, AvalonBay Communities Valuation, AvalonBay Communities Correlation, AvalonBay Communities Hype Analysis, AvalonBay Communities Volatility, AvalonBay Communities History and analyze AvalonBay Communities Performance.
For information on how to trade AvalonBay Stock refer to our How to Trade AvalonBay Stock guide.

AvalonBay Communities Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. AvalonBay Communities market risk premium is the additional return an investor will receive from holding AvalonBay Communities 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 AvalonBay Communities. 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 AvalonBay Communities' performance over market.
α0.14   β0.27

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

AvalonBay Communities Market Price Analysis

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

AvalonBay Communities Return and Market Media

The median price of AvalonBay Communities for the period between Fri, Jan 26, 2024 and Thu, Apr 25, 2024 is 225.82 with a coefficient of variation of 3.54. The daily time series for the period is distributed with a sample standard deviation of 7.95, arithmetic mean of 224.79, and mean deviation of 6.75. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About AvalonBay Communities 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 AvalonBay or other stocks. Alpha measures the amount that position in AvalonBay Communities 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 AvalonBay Communities 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, AvalonBay Communities' short interest history, or implied volatility extrapolated from AvalonBay Communities options trading.

Build Portfolio with AvalonBay Communities

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.

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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 AvalonBay Communities offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AvalonBay Communities' 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 Avalonbay Communities Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Avalonbay Communities Stock:
Check out AvalonBay Communities Backtesting, AvalonBay Communities Valuation, AvalonBay Communities Correlation, AvalonBay Communities Hype Analysis, AvalonBay Communities Volatility, AvalonBay Communities History and analyze AvalonBay Communities Performance.
For information on how to trade AvalonBay Stock refer to our How to Trade AvalonBay Stock guide.
Note that the AvalonBay Communities information on this page should be used as a complementary analysis to other AvalonBay Communities' 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Complementary Tools for AvalonBay Stock analysis

When running AvalonBay Communities' price analysis, check to measure AvalonBay Communities' 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 AvalonBay Communities is operating at the current time. Most of AvalonBay Communities' value examination focuses on studying past and present price action to predict the probability of AvalonBay Communities' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AvalonBay Communities' price. Additionally, you may evaluate how the addition of AvalonBay Communities to your portfolios can decrease your overall portfolio volatility.
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AvalonBay Communities 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 AvalonBay Communities technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of AvalonBay Communities 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...