SPAREBANK (Norway) Alpha and Beta Analysis


NOK 111.40  1.00  0.89%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as SPAREBANK 1 SMN. It also helps investors analyze the systematic and unsystematic risks associated with investing in SPAREBANK over a specified time horizon. Remember, high SPAREBANK'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 SPAREBANK Backtesting, SPAREBANK Valuation, SPAREBANK Correlation, SPAREBANK Hype Analysis, SPAREBANK Volatility, SPAREBANK History and analyze SPAREBANK Performance.
Please note that although SPAREBANK 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, SPAREBANK did 0.06  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 SPAREBANK 1 SMN stock's relative risk over its benchmark. SPAREBANK 1 SMN has a beta of 0.11  . Let's try to break down what SPAREBANK's beta means in this case. As returns on the market increase, SPAREBANK returns are expected to increase less than the market. However, during the bear market, the loss on holding SPAREBANK will be expected to be smaller as well.
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.

SPAREBANK Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. SPAREBANK market risk premium is the additional return an investor will receive from holding SPAREBANK 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 SPAREBANK. 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 SPAREBANK's performance over market.
α-0.06   β0.11
90 days against DJI

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

SPAREBANK Market Price Analysis

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

SPAREBANK Return and Market Media

The median price of SPAREBANK for the period between Wed, Jul 6, 2022 and Tue, Oct 4, 2022 is 120.6 with a coefficient of variation of 3.34. The daily time series for the period is distributed with a sample standard deviation of 4.02, arithmetic mean of 120.47, and mean deviation of 3.18. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  

About SPAREBANK 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 SPAREBANK or other stocks. Alpha measures the amount that position in SPAREBANK 1 SMN 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 SPAREBANK 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, SPAREBANK's short interest history, or implied volatility extrapolated from SPAREBANK options trading.

Build Portfolio with SPAREBANK

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
Additionally, see SPAREBANK Backtesting, SPAREBANK Valuation, SPAREBANK Correlation, SPAREBANK Hype Analysis, SPAREBANK Volatility, SPAREBANK History and analyze SPAREBANK Performance. You can also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Tools for SPAREBANK Stock

When running SPAREBANK 1 SMN price analysis, check to measure SPAREBANK'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 SPAREBANK is operating at the current time. Most of SPAREBANK's value examination focuses on studying past and present price action to predict the probability of SPAREBANK's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move SPAREBANK's price. Additionally, you may evaluate how the addition of SPAREBANK to your portfolios can decrease your overall portfolio volatility.
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