DOW Index Alpha and Beta Analysis

DJI
 Index
  

 29,276  314.54  1.06%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as DOW. It also helps investors analyze the systematic and unsystematic risks associated with investing in DOW over a specified time horizon. Remember, high DOW'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.
Check out DOW Backtesting, Portfolio Optimization, DOW Correlation, DOW Hype Analysis, DOW Volatility, DOW History and analyze DOW Performance.
Please note that although DOW 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, DOW did 0.00  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 DOW index's relative risk over its benchmark. DOW has a beta of 0.00  . Let's try to break down what DOW's beta means in this case. The returns on DOW and DOW are completely uncorrelated.
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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.

DOW Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. DOW market risk premium is the additional return an investor will receive from holding DOW 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 DOW. 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 DOW's performance over market.
α0.00   β0.00
90 days against DJI

DOW Fundamentals

DOW Market Price Analysis

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

DOW Return and Market Media

The median price of DOW for the period between Tue, Jun 28, 2022 and Mon, Sep 26, 2022 is 31774.52 with a coefficient of variation of 3.35. The daily time series for the period is distributed with a sample standard deviation of 1068.95, arithmetic mean of 31884.66, and mean deviation of 887.73. The Index did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About DOW 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 DOW or other indexs. Alpha measures the amount that position in DOW 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 DOW 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, DOW's short interest history, or implied volatility extrapolated from DOW options trading.

Build Portfolio with DOW

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
Check out DOW Backtesting, Portfolio Optimization, DOW Correlation, DOW Hype Analysis, DOW Volatility, DOW History and analyze DOW Performance. You can also try ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Tools for DOW Index

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