AMP Stock Alpha and Beta Analysis

AMLYY
 Stock
  

USD 2.95  0.00  0.00%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as AMP LIMITED. It also helps investors analyze the systematic and unsystematic risks associated with investing in AMP over a specified time horizon. Remember, high AMP'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.
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Please note that although AMP 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, AMP did 0.09  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 AMP LIMITED stock's relative risk over its benchmark. AMP LIMITED has a beta of 0.006  . Let's try to break down what AMP's beta means in this case. As returns on the market increase, AMP returns are expected to increase less than the market. However, during the bear market, the loss on holding AMP 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.

AMP Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. AMP market risk premium is the additional return an investor will receive from holding AMP 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 AMP. 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 AMP's performance over market.
α-0.09   β0.006
90 days against DJI

AMP Fundamentals Vs Peers

Comparing AMP's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze AMP's direct or indirect competition across all of the common fundamentals between AMP and the related equities. This way, we can detect undervalued stocks with similar characteristics as AMP or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of AMP's fundamental indicators could also be used in its relative valuation, which is a method of valuing AMP by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare AMP to competition
FundamentalsAMPPeer Average
Return On Equity(6.15) %(0.31) %
Return On Asset0.09 %(0.14) %
Profit Margin(7.64) %(1.27) %
Operating Margin1.39 %(5.51) %
Current Valuation24.67 B16.62 B
Shares Outstanding816.53 M571.82 M
Price to Earning29.50 X28.72 X

AMP Opportunities

AMP Return and Market Media

The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

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

Build Portfolio with AMP

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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Align your risk with return expectations

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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 continue to Trending Equities. You can also try Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Tools for AMP Stock

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