Nicholas Mutual Fund Alpha and Beta Analysis

NCTWX -  USA Fund  

USD 37.33  0.49  1.30%

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

Nicholas Beta 

 
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Please note that although Nicholas 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, Nicholas did 0.06  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 Nicholas II fund's relative risk over its benchmark. Nicholas II has a beta of 0.12  . Let's try to break down what Nicholas's beta means in this case. As returns on the market increase, Nicholas returns are expected to increase less than the market. However, during the bear market, the loss on holding Nicholas 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.

Nicholas Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Nicholas market risk premium is the additional return an investor will receive from holding Nicholas 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 Nicholas. 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 Nicholas' performance over market.
α0.06   β0.12
90 days against DJI

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

Nicholas Market Price Analysis

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

Nicholas Return and Market Media

The median price of Nicholas for the period between Fri, Jul 23, 2021 and Thu, Oct 21, 2021 is 37.01 with a coefficient of variation of 1.66. The daily time series for the period is distributed with a sample standard deviation of 0.61, arithmetic mean of 36.91, and mean deviation of 0.49. The Fund did not receive any noticable media coverage during the period.
 Price Growth (%)  
      Timeline 

About Nicholas 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 Nicholas II 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.

Nicholas Investors Sentiment

The influence of Nicholas' 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 Nicholas. 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 - NCTWX

Nicholas II Investor Sentiment

Most of Macroaxis users are now bullish on Nicholas II. What is your trading attitude regarding investing in Nicholas II? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Build Portfolio with Nicholas

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
Additionally, see Nicholas Backtesting, Portfolio Optimization, Nicholas Correlation, Nicholas Hype Analysis, Nicholas Volatility, Nicholas History and analyze Nicholas Performance. Note that the Nicholas II information on this page should be used as a complementary analysis to other Nicholas' 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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