Larsen Toubro (UK) Alpha and Beta Analysis
LTOD Stock | USD 42.30 1.20 2.76% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Larsen Toubro Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Larsen Toubro over a specified time horizon. Remember, high Larsen Toubro'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. Key technical indicators related to Larsen Toubro's market risk premium analysis include:
Beta 0.38 | Alpha (0) | Risk 1.46 | Sharpe Ratio 0.0733 | Expected Return 0.11 |
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.
Larsen |
Larsen Toubro Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Larsen Toubro market risk premium is the additional return an investor will receive from holding Larsen Toubro 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 Larsen Toubro. 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 Larsen Toubro's performance over market.α | -0.0022 | β | 0.38 |
Larsen Toubro 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 Larsen Toubro's Buy-and-hold return. Our buy-and-hold chart shows how Larsen Toubro performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Larsen Toubro Market Price Analysis
Market price analysis indicators help investors to evaluate how Larsen Toubro stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Larsen Toubro shares will generate the highest return on investment. By understating and applying Larsen Toubro stock market price indicators, traders can identify Larsen Toubro position entry and exit signals to maximize returns.
Larsen Toubro Return and Market Media
The median price of Larsen Toubro for the period between Sun, Feb 4, 2024 and Sat, May 4, 2024 is 43.2 with a coefficient of variation of 4.2. The daily time series for the period is distributed with a sample standard deviation of 1.8, arithmetic mean of 42.88, and mean deviation of 1.49. The Stock received substential amount of media coverage during this period. Price Growth (%) |
Timeline |
1 | Larsen Toubro Stocks Updates Larsen Toubro Trades at Rs 3305.5 with -0.49 percent Change Today and 168.98... - Economic Times | 02/14/2024 |
2 | LT share price Today Live Updates LT stock falls as markets dip Mint - Mint | 02/29/2024 |
3 | Larsen Toubro Stocks Live Updates Larsen Toubro Closes at Rs 3617.8 with 3-Month Return of 4.02 percent - The Economic Times | 03/25/2024 |
4 | LT sells stake in LT Infrastructure Development Projects - BusinessLine | 04/10/2024 |
5 | Larsen Toubro rises Monday, still underperforms market - MarketWatch | 04/29/2024 |
About Larsen Toubro 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 Larsen or other stocks. Alpha measures the amount that position in Larsen Toubro 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 Larsen Toubro 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, Larsen Toubro's short interest history, or implied volatility extrapolated from Larsen Toubro options trading.
Build Portfolio with Larsen Toubro
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
Check out Larsen Toubro Backtesting, Larsen Toubro Valuation, Larsen Toubro Correlation, Larsen Toubro Hype Analysis, Larsen Toubro Volatility, Larsen Toubro History and analyze Larsen Toubro Performance. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Complementary Tools for Larsen Stock analysis
When running Larsen Toubro's price analysis, check to measure Larsen Toubro'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 Larsen Toubro is operating at the current time. Most of Larsen Toubro's value examination focuses on studying past and present price action to predict the probability of Larsen Toubro's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Larsen Toubro's price. Additionally, you may evaluate how the addition of Larsen Toubro to your portfolios can decrease your overall portfolio volatility.
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