ABB (Switzerland) Alpha and Beta Analysis
| ABBN Stock | CHF 44.55 0.08 0.18% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as ABB. It also helps investors analyze the systematic and unsystematic risks associated with investing in ABB over a specified time horizon. Remember, high ABB'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 ABB's market risk premium analysis include:
Beta 0.31 | Alpha 0.35 | Risk 1.14 | Sharpe Ratio 0.31 | Expected Return 0.35 |
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.
ABB |
ABB Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. ABB market risk premium is the additional return an investor will receive from holding ABB 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 ABB. 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 ABB's performance over market.| α | 0.35 | β | 0.31 |
ABB 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 ABB's Buy-and-hold return. Our buy-and-hold chart shows how ABB performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.ABB Market Price Analysis
Market price analysis indicators help investors to evaluate how ABB stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading ABB shares will generate the highest return on investment. By understating and applying ABB stock market price indicators, traders can identify ABB position entry and exit signals to maximize returns.
ABB Return and Market Media
The median price of ABB for the period between Fri, Jan 26, 2024 and Thu, Apr 25, 2024 is 39.99 with a coefficient of variation of 6.33. The daily time series for the period is distributed with a sample standard deviation of 2.52, arithmetic mean of 39.81, and mean deviation of 2.07. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About ABB 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 ABB or other stocks. Alpha measures the amount that position in ABB 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 ABB 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, ABB's short interest history, or implied volatility extrapolated from ABB options trading.
Build Portfolio with ABB
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 ABB Backtesting, ABB Valuation, ABB Correlation, ABB Hype Analysis, ABB Volatility, ABB History and analyze ABB Performance. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Complementary Tools for ABB Stock analysis
When running ABB's price analysis, check to measure ABB'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 ABB is operating at the current time. Most of ABB's value examination focuses on studying past and present price action to predict the probability of ABB's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ABB's price. Additionally, you may evaluate how the addition of ABB to your portfolios can decrease your overall portfolio volatility.
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |
ABB 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.