Parnassus Mutual Fund Alpha and Beta Analysis

PFPRX
 Fund
  

USD 41.71  0.52  1.26%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Parnassus Fund -. It also helps investors analyze the systematic and unsystematic risks associated with investing in Parnassus Fund over a specified time horizon. Remember, high Parnassus Fund'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.
Please check Parnassus Fund Backtesting, Portfolio Optimization, Parnassus Fund Correlation, Parnassus Fund Hype Analysis, Parnassus Fund Volatility, Parnassus Fund History and analyze Parnassus Fund Performance.
  
Please note that although Parnassus Fund 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, Parnassus Fund did 0.017715  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 Parnassus Fund - fund's relative risk over its benchmark. Parnassus Fund - has a beta of 0.26  . Let's try to break down what Parnassus's beta means in this case. As returns on the market increase, Parnassus Fund returns are expected to increase less than the market. However, during the bear market, the loss on holding Parnassus Fund 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.

Parnassus Fund Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Parnassus Fund market risk premium is the additional return an investor will receive from holding Parnassus Fund 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 Parnassus Fund. 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 Parnassus Fund's performance over market.
α0.017715   β0.26
90 days against DJI

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

Parnassus Fund Market Price Analysis

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

Parnassus Fund Return and Market Media

The median price of Parnassus Fund for the period between Wed, Jun 29, 2022 and Tue, Sep 27, 2022 is 45.57 with a coefficient of variation of 5.54. The daily time series for the period is distributed with a sample standard deviation of 2.55, arithmetic mean of 45.97, and mean deviation of 2.14. The Fund did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Parnassus Fund 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 Parnassus or other funds. Alpha measures the amount that position in Parnassus Fund - 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 Parnassus Fund 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, Parnassus Fund's short interest history, or implied volatility extrapolated from Parnassus Fund options trading.

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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
Please check Parnassus Fund Backtesting, Portfolio Optimization, Parnassus Fund Correlation, Parnassus Fund Hype Analysis, Parnassus Fund Volatility, Parnassus Fund History and analyze Parnassus Fund Performance. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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