Magnachip Semiconductor (Germany) Alpha and Beta Analysis
| SMG Stock | EUR 4.46 0.06 1.33% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Magnachip Semiconductor. It also helps investors analyze the systematic and unsystematic risks associated with investing in Magnachip Semiconductor over a specified time horizon. Remember, high Magnachip Semiconductor'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 Magnachip Semiconductor's market risk premium analysis include:
Beta 0.53 | Alpha (0.18) | Risk 1.58 | Sharpe Ratio (0.12) | Expected Return (0.18) |
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.
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Magnachip Semiconductor Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Magnachip Semiconductor market risk premium is the additional return an investor will receive from holding Magnachip Semiconductor 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 Magnachip Semiconductor. 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 Magnachip Semiconductor's performance over market.| α | -0.18 | β | 0.53 |
Magnachip Semiconductor 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 Magnachip Semiconductor's Buy-and-hold return. Our buy-and-hold chart shows how Magnachip Semiconductor performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Magnachip Semiconductor Market Price Analysis
Market price analysis indicators help investors to evaluate how Magnachip Semiconductor stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Magnachip Semiconductor shares will generate the highest return on investment. By understating and applying Magnachip Semiconductor stock market price indicators, traders can identify Magnachip Semiconductor position entry and exit signals to maximize returns.
Magnachip Semiconductor Return and Market Media
The median price of Magnachip Semiconductor for the period between Mon, Mar 18, 2024 and Sun, Jun 16, 2024 is 4.56 with a coefficient of variation of 5.13. The daily time series for the period is distributed with a sample standard deviation of 0.24, arithmetic mean of 4.68, and mean deviation of 0.21. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Magnachip Semiconductor 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 Magnachip or other stocks. Alpha measures the amount that position in Magnachip Semiconductor 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 Magnachip Semiconductor 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, Magnachip Semiconductor's short interest history, or implied volatility extrapolated from Magnachip Semiconductor options trading.
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Additional Information and Resources on Investing in Magnachip Stock
When determining whether Magnachip Semiconductor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Magnachip Semiconductor's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Magnachip Semiconductor Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Magnachip Semiconductor Stock:Check out Magnachip Semiconductor Backtesting, Magnachip Semiconductor Valuation, Magnachip Semiconductor Correlation, Magnachip Semiconductor Hype Analysis, Magnachip Semiconductor Volatility, Magnachip Semiconductor History and analyze Magnachip Semiconductor Performance. For more detail on how to invest in Magnachip Stock please use our How to Invest in Magnachip Semiconductor guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Magnachip Semiconductor technical 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, stock market cycles, or different charting patterns.