BASF SE (Germany) Alpha and Beta Analysis

BAS -  Germany Stock  

EUR 66.22  0.54  0.81%

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as BASF SE NA. It also helps investors analyze the systematic and unsystematic risks associated with investing in BASF SE over a specified time horizon. Remember, high BASF SE'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.
Continue to BASF SE Backtesting, BASF SE Valuation, BASF SE Correlation, BASF SE Hype Analysis, BASF SE Volatility, BASF SE History and analyze BASF SE Performance.

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Please note that although BASF SE 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., DOW index.) So in this particular case, BASF SE did 0.12  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 BASF SE NA stock's relative risk over its benchmark. BASF SE NA has a beta of 0.64  . Let's try to break down what BASF SE's beta means in this case. As returns on the market increase, BASF SE returns are expected to increase less than the market. However, during the bear market, the loss on holding BASF SE will be expected to be smaller as well.
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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.

BASF SE Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. BASF SE market risk premium is the additional return an investor will receive from holding BASF SE 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 BASF SE. 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 BASF SE's performance over market.
α-0.12   β0.64
90 days against DJI

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

BASF SE Market Price Analysis

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

BASF SE Return and Market Media

The median price of BASF SE for the period between Mon, May 3, 2021 and Sun, Aug 1, 2021 is 67.24 with a coefficient of variation of 2.15. The daily time series for the period is distributed with a sample standard deviation of 1.45, arithmetic mean of 67.55, and mean deviation of 1.11. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
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About BASF SE 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 equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in BASF SE NA 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.

BASF SE Investors Sentiment

The influence of BASF SE's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in BASF SE. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - BAS

BASF SE NA Investor Sentiment

Most of Macroaxis users are currently bullish on BASF SE NA. What is your opinion about investing in BASF SE NA? Are you bullish or bearish?
Bullish
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98% Bullish
2% Bearish
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Continue to BASF SE Backtesting, BASF SE Valuation, BASF SE Correlation, BASF SE Hype Analysis, BASF SE Volatility, BASF SE History and analyze BASF SE Performance. Note that the BASF SE NA information on this page should be used as a complementary analysis to other BASF SE'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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Tools for BASF SE Stock

When running BASF SE NA price analysis, check to measure BASF SE'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 BASF SE is operating at the current time. Most of BASF SE's value examination focuses on studying past and present price action to predict the probability of BASF SE's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move BASF SE's price. Additionally, you may evaluate how the addition of BASF SE to your portfolios can decrease your overall portfolio volatility.
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