Azul SA (Brazil) Alpha and Beta Analysis

AZUL4 Preferred Stock  BRL 13.04  1.08  7.65%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Azul SA. It also helps investors analyze the systematic and unsystematic risks associated with investing in Azul SA over a specified time horizon. Remember, high Azul SA'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 Azul SA's market risk premium analysis include:
Beta
0.46
Alpha
(0.19)
Risk
3.2
Sharpe Ratio
(0.05)
Expected Return
(0.15)
Please note that although Azul SA 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, Azul SA did 0.19  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 Azul SA preferred stock's relative risk over its benchmark. Azul SA has a beta of 0.46  . As returns on the market increase, Azul SA's returns are expected to increase less than the market. However, during the bear market, the loss of holding Azul SA 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 Azul SA Backtesting, Azul SA Valuation, Azul SA Correlation, Azul SA Hype Analysis, Azul SA Volatility, Azul SA History and analyze Azul SA Performance.
For more information on how to buy Azul Preferred Stock please use our How to Invest in Azul SA guide.

Azul SA Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Azul SA market risk premium is the additional return an investor will receive from holding Azul SA 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 Azul SA. 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 Azul SA's performance over market.
α-0.19   β0.46

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

Azul SA Market Price Analysis

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

Azul SA Return and Market Media

The median price of Azul SA for the period between Sat, Dec 30, 2023 and Fri, Mar 29, 2024 is 13.27 with a coefficient of variation of 9.34. The daily time series for the period is distributed with a sample standard deviation of 1.25, arithmetic mean of 13.41, and mean deviation of 1.01. The Preferred Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Azul SA 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 Azul or other preferred stocks. Alpha measures the amount that position in Azul SA 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 Azul SA 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, Azul SA's short interest history, or implied volatility extrapolated from Azul SA options trading.

Build Portfolio with Azul SA

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
Check out Azul SA Backtesting, Azul SA Valuation, Azul SA Correlation, Azul SA Hype Analysis, Azul SA Volatility, Azul SA History and analyze Azul SA Performance.
For more information on how to buy Azul Preferred Stock please use our How to Invest in Azul SA guide.
Note that the Azul SA information on this page should be used as a complementary analysis to other Azul SA'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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Complementary Tools for Azul Preferred Stock analysis

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