FTSE EM Etf Alpha and Beta Analysis

VWO
 Etf
  

USD 40.46  1.01  2.56%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as FTSE EM ETF. It also helps investors analyze the systematic and unsystematic risks associated with investing in FTSE EM over a specified time horizon. Remember, high FTSE EM'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.
Also, please take a look at FTSE EM Backtesting, Portfolio Optimization, FTSE EM Correlation, FTSE EM Hype Analysis, FTSE EM Volatility, FTSE EM History and analyze FTSE EM Performance.
  
Please note that although FTSE EM 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, FTSE EM did 0.11  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 FTSE EM ETF etf's relative risk over its benchmark. FTSE EM ETF has a beta of 0.65  . Let's try to break down what FTSE EM's beta means in this case. As returns on the market increase, FTSE EM returns are expected to increase less than the market. However, during the bear market, the loss on holding FTSE EM 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.

FTSE EM Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. FTSE EM market risk premium is the additional return an investor will receive from holding FTSE EM 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 FTSE EM. 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 FTSE EM's performance over market.
α-0.11   β0.65
90 days against DJI

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

FTSE EM Market Price Analysis

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

FTSE EM Return and Market Media

The median price of FTSE EM for the period between Thu, Sep 1, 2022 and Wed, Nov 30, 2022 is 38.16 with a coefficient of variation of 4.43. The daily time series for the period is distributed with a sample standard deviation of 1.69, arithmetic mean of 38.02, and mean deviation of 1.48. The Etf did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About FTSE EM 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 FTSE EM or other etfs. Alpha measures the amount that position in FTSE EM ETF 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 FTSE EM 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, FTSE EM's short interest history, or implied volatility extrapolated from FTSE EM options trading.

Build Portfolio with FTSE EM

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.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
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
Also, please take a look at FTSE EM Backtesting, Portfolio Optimization, FTSE EM Correlation, FTSE EM Hype Analysis, FTSE EM Volatility, FTSE EM History and analyze FTSE EM Performance. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Complementary Tools for analysis

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