Annaly Capital Management Preferred Stock Alpha and Beta Analysis

NLY-PF Preferred Stock  USD 25.13  0.06  0.24%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Annaly Capital Management. It also helps investors analyze the systematic and unsystematic risks associated with investing in Annaly Capital over a specified time horizon. Remember, high Annaly Capital'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 Annaly Capital's market risk premium analysis include:
Beta
(0.01)
Alpha
0.0156
Risk
0.24
Sharpe Ratio
0.13
Expected Return
0.0303
Please note that although Annaly Capital 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, Annaly Capital did 0.02  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 Annaly Capital Management preferred stock's relative risk over its benchmark. Annaly Capital Management has a beta of 0.01  . As returns on the market increase, returns on owning Annaly Capital are expected to decrease at a much lower rate. During the bear market, Annaly Capital is likely to outperform the market. .
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 Annaly Capital Backtesting, Annaly Capital Valuation, Annaly Capital Correlation, Annaly Capital Hype Analysis, Annaly Capital Volatility, Annaly Capital History and analyze Annaly Capital Performance.

Annaly Capital Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Annaly Capital market risk premium is the additional return an investor will receive from holding Annaly Capital 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 Annaly Capital. 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 Annaly Capital's performance over market.
α0.02   β-0.0066

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

Annaly Capital Market Price Analysis

Market price analysis indicators help investors to evaluate how Annaly Capital 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 Annaly Capital shares will generate the highest return on investment. By understating and applying Annaly Capital preferred stock market price indicators, traders can identify Annaly Capital position entry and exit signals to maximize returns.

Annaly Capital Return and Market Media

The median price of Annaly Capital for the period between Sat, Jan 20, 2024 and Fri, Apr 19, 2024 is 25.1 with a coefficient of variation of 0.82. The daily time series for the period is distributed with a sample standard deviation of 0.21, arithmetic mean of 25.02, and mean deviation of 0.18. The Preferred Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

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

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Complementary Tools for Annaly Preferred Stock analysis

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