Honda Stock Alpha and Beta Analysis

HMC
 Stock
  

USD 24.11  0.32  1.31%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Honda Motor. It also helps investors analyze the systematic and unsystematic risks associated with investing in Honda over a specified time horizon. Remember, high Honda'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 Honda Backtesting, Honda Valuation, Honda Correlation, Honda Hype Analysis, Honda Volatility, Honda History and analyze Honda Performance.
  
Please note that although Honda 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, Honda did 0.17  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 Honda Motor stock's relative risk over its benchmark. Honda Motor has a beta of 0.94  . Let's try to break down what Honda's beta means in this case. Honda returns are very sensitive to returns on the market. As the market goes up or down, Honda is expected to follow.
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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.

Honda Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Honda market risk premium is the additional return an investor will receive from holding Honda 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 Honda. 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 Honda's performance over market.
α-0.17   β0.94
90 days against DJI

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

Honda Market Price Analysis

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

Honda Return and Market Media

The median price of Honda for the period between Sun, Aug 28, 2022 and Sat, Nov 26, 2022 is 23.45 with a coefficient of variation of 5.84. The daily time series for the period is distributed with a sample standard deviation of 1.37, arithmetic mean of 23.55, and mean deviation of 1.12. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Honda Motor Provides Earnings Guidance for Fiscal Year 2023 ...09/02/2022
2
Honda throws cold water on listing speculation - Seeking Alp...09/14/2022
3
Japans Stanley Electric signs capital alliance agreement wit...09/27/2022
4
EPS Estimate09/30/2022
5
Auto Roundup Slew of Updates From GM STLA Grab Most Attentio...10/17/2022
6
Heres Where Americas New Car Inventory Stands Entering Novem...10/26/2022
7
EPS Reported11/09/2022
8
Is Honda Stock A Buy As Motorcycle Business Shines - Nasdaq11/23/2022

About Honda 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 Honda or other stocks. Alpha measures the amount that position in Honda Motor 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.

Honda Upcoming Company Events

As portrayed in its financial statements, the presentation of Honda's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Honda's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Honda's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Honda. Please utilize our Beneish M Score to check the likelihood of Honda's management manipulating its earnings.
Upcoming Quarterly Report8th of February 2022
Next Financial Report13th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End13th of May 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Honda

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
Please check Honda Backtesting, Honda Valuation, Honda Correlation, Honda Hype Analysis, Honda Volatility, Honda History and analyze Honda Performance. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Complementary Tools for analysis

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