McDonalds Stock Alpha and Beta Analysis

MCD
 Stock
  

USD 234.38  2.56  1.08%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as McDonalds Corp. It also helps investors analyze the systematic and unsystematic risks associated with investing in McDonalds Corp over a specified time horizon. Remember, high McDonalds Corp'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.
Additionally, see McDonalds Corp Backtesting, McDonalds Corp Valuation, McDonalds Corp Correlation, McDonalds Corp Hype Analysis, McDonalds Corp Volatility, McDonalds Corp History and analyze McDonalds Corp Performance.
  
Please note that although McDonalds Corp 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, McDonalds Corp did 0.034061  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 McDonalds Corp stock's relative risk over its benchmark. McDonalds Corp has a beta of 0.54  . Let's try to break down what McDonalds's beta means in this case. As returns on the market increase, McDonalds Corp returns are expected to increase less than the market. However, during the bear market, the loss on holding McDonalds Corp 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.

McDonalds Corp Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. McDonalds Corp market risk premium is the additional return an investor will receive from holding McDonalds Corp 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 McDonalds Corp. 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 McDonalds Corp's performance over market.
α-0.03   β0.54
90 days against DJI

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

McDonalds Corp Market Price Analysis

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

McDonalds Corp Return and Market Media

The median price of McDonalds Corp for the period between Fri, Jul 1, 2022 and Thu, Sep 29, 2022 is 255.66 with a coefficient of variation of 2.56. The daily time series for the period is distributed with a sample standard deviation of 6.54, arithmetic mean of 255.72, and mean deviation of 5.04. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
EPS Reported07/26/2022
2
Exercise or conversion by Catherine Hoovel of 2371 shares of...07/29/2022
3
5 DJIA stocks to explore in August AAPL, CVX, MRK, KO MCD - ...08/11/2022
4
McDonalds is bringing a British hit to the US - CNN08/19/2022
5
Financial Statements08/22/2022
6
McDonalds Corp. stock falls Tuesday, underperforms market - ...08/23/2022
7
The Fast Bill and What it Means for McDonalds and Restaurant...08/30/2022
8
Acquisition by Rice Brian S of 7928 shares of McDonalds Corp...09/02/2022
9
McDonalds Corp exotic insider transaction detected09/08/2022
10
Financial Statements09/09/2022
11
Portillos , McDonalds This Food Truck Hacked Chick-fil-A. Th...09/13/2022
12
McDonalds Stock Im Lovin The Quality - Seeking Alpha09/19/2022
13
7 Stocks to Buy That Can Soar in Good Times or in Bad - Inve...09/22/2022
14
McDonalds Corp. stock falls Tuesday, underperforms market - ...09/27/2022

About McDonalds Corp 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 McDonalds or other stocks. Alpha measures the amount that position in McDonalds Corp 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.

McDonalds Corp Upcoming Company Events

As portrayed in its financial statements, the presentation of McDonalds Corp's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, McDonalds Corp's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of McDonalds Corp's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of McDonalds Corp. Please utilize our Beneish M Score to check the likelihood of McDonalds Corp's management manipulating its earnings.
Upcoming Quarterly Report27th of January 2022
Next Financial Report5th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End27th of January 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with McDonalds Corp

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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
Additionally, see McDonalds Corp Backtesting, McDonalds Corp Valuation, McDonalds Corp Correlation, McDonalds Corp Hype Analysis, McDonalds Corp Volatility, McDonalds Corp History and analyze McDonalds Corp Performance. Note that the McDonalds Corp information on this page should be used as a complementary analysis to other McDonalds Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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