Algonquin Stock Alpha and Beta Analysis


USD 24.36  0.07  0.29%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Algonquin Power Utilities. It also helps investors analyze the systematic and unsystematic risks associated with investing in Algonquin Power over a specified time horizon. Remember, high Algonquin Power'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 continue to Algonquin Power Backtesting, Algonquin Power Valuation, Algonquin Power Correlation, Algonquin Power Hype Analysis, Algonquin Power Volatility, Algonquin Power History and analyze Algonquin Power Performance.
Please note that although Algonquin Power 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, Algonquin Power did 0.028438  worse 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 Algonquin Power Utilities stock's relative risk over its benchmark. Algonquin Power Utilities has a beta of 0.13  . Let's try to break down what Algonquin's beta means in this case. As returns on the market increase, returns on owning Algonquin Power are expected to decrease at a much lower rate. During the bear market, Algonquin Power 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.

Algonquin Power Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Algonquin Power market risk premium is the additional return an investor will receive from holding Algonquin Power 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 Algonquin Power. 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 Algonquin Power's performance over market.
α-0.03   β-0.13
90 days against DJI

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

Algonquin Power Market Price Analysis

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

Algonquin Power Return and Market Media

The median price of Algonquin Power for the period between Tue, Jul 5, 2022 and Mon, Oct 3, 2022 is 24.64 with a coefficient of variation of 2.14. The daily time series for the period is distributed with a sample standard deviation of 0.53, arithmetic mean of 24.71, and mean deviation of 0.43. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
Algonquin Power Utilities Corp. stock outperforms market des...07/11/2022
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Algonquin Power Utilities Corp. Announces 2022 Second Quarte...08/11/2022
Bidens US700B bill to benefit these Canadian stocks - Yahoo ...08/17/2022
Got 2000 Here Are 3 Smart TSX Stocks to Buy Now - The Motley...09/07/2022
Stocks in play Algonquin Power Utilities Corp - Yahoo Canada...09/30/2022

About Algonquin Power 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 Algonquin or other stocks. Alpha measures the amount that position in Algonquin Power Utilities 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 Algonquin Power 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, Algonquin Power's short interest history, or implied volatility extrapolated from Algonquin Power options trading.

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Algonquin Power 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.
A focus of Algonquin Power technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Algonquin Power 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...