Cme Group Stock Alpha and Beta Analysis

CME Stock  USD 215.29  0.31  0.14%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as CME Group. It also helps investors analyze the systematic and unsystematic risks associated with investing in CME over a specified time horizon. Remember, high CME'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 CME's market risk premium analysis include:
Beta
0.23
Alpha
0.011
Risk
1.14
Sharpe Ratio
0.0443
Expected Return
0.0504
Please note that although CME 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., NYSE Composite index.) So in this particular case, CME did 0.01  better 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 CME Group stock's relative risk over its benchmark. CME Group has a beta of 0.23  . As returns on the market increase, CME's returns are expected to increase less than the market. However, during the bear market, the loss of holding CME is 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.
  
Check out CME Backtesting, CME Valuation, CME Correlation, CME Hype Analysis, CME Volatility, CME History and analyze CME Performance.

CME Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. CME market risk premium is the additional return an investor will receive from holding CME 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 CME. 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 CME's performance over market.
α0.01   β0.23

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

CME Market Price Analysis

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

CME Return and Market Media

The median price of CME for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 209.89 with a coefficient of variation of 3.64. The daily time series for the period is distributed with a sample standard deviation of 7.61, arithmetic mean of 209.26, and mean deviation of 6.85. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  
 
CME dividend paid on 18th of January 2024
01/18/2024
 
CME dividend paid on 26th of March 2024
03/26/2024

About CME 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 CME or other stocks. Alpha measures the amount that position in CME Group 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.

CME Upcoming Company Events

As portrayed in its financial statements, the presentation of CME's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, CME's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of CME's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of CME. Please utilize our Beneish M Score to check the likelihood of CME's management manipulating its earnings.
14th of February 2024
Upcoming Quarterly Report
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24th of April 2024
Next Financial Report
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31st of December 2023
Next Fiscal Quarter End
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14th of February 2024
Next Fiscal Year End
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30th of September 2023
Last Quarter Report
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31st of December 2022
Last Financial Announcement
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When determining whether CME Group is a strong investment it is important to analyze CME's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CME's future performance. For an informed investment choice regarding CME Stock, refer to the following important reports:

Complementary Tools for CME Stock analysis

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