Erie Indemnity Stock Alpha and Beta Analysis

ERIE Stock  USD 408.17  2.21  0.54%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Erie Indemnity. It also helps investors analyze the systematic and unsystematic risks associated with investing in Erie Indemnity over a specified time horizon. Remember, high Erie Indemnity'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 Erie Indemnity's market risk premium analysis include:
Beta
0.4
Alpha
0.28
Risk
1.81
Sharpe Ratio
0.19
Expected Return
0.35
Please note that although Erie Indemnity 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, Erie Indemnity did 0.28  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 Erie Indemnity stock's relative risk over its benchmark. Erie Indemnity has a beta of 0.40  . As returns on the market increase, Erie Indemnity's returns are expected to increase less than the market. However, during the bear market, the loss of holding Erie Indemnity is expected to be smaller as well. The current year's Price Book Value Ratio is expected to grow to 11.14. The current year's Enterprise Value Multiple is expected to grow to 32.35.
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 Erie Indemnity Backtesting, Erie Indemnity Valuation, Erie Indemnity Correlation, Erie Indemnity Hype Analysis, Erie Indemnity Volatility, Erie Indemnity History and analyze Erie Indemnity Performance.
For information on how to trade Erie Stock refer to our How to Trade Erie Stock guide.

Erie Indemnity Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Erie Indemnity market risk premium is the additional return an investor will receive from holding Erie Indemnity 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 Erie Indemnity. 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 Erie Indemnity's performance over market.
α0.28   β0.40

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

Erie Indemnity Market Price Analysis

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

Erie Indemnity Return and Market Media

The median price of Erie Indemnity for the period between Fri, Dec 29, 2023 and Thu, Mar 28, 2024 is 350.0 with a coefficient of variation of 8.94. The daily time series for the period is distributed with a sample standard deviation of 32.53, arithmetic mean of 363.97, and mean deviation of 29.44. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
 
Erie Indemnity dividend paid on 23rd of January 2024
01/23/2024
1
KeyBank Celebrates Opening of New, Full-Service Branch in Erie, PA, Grant To Support a Local Non-Profit
02/16/2024
2
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02/28/2024
3
All You Need to Know About Erie Indemnity Rating Upgrade to Buy
02/29/2024
4
Ryan Specialty Stock Is No. 1 In Its Group On Record Sales, Profits
03/04/2024
5
AON Acquires Humn.ai to Enhance Fleet Mobility Offerings
03/08/2024
6
Recent Price Trend in Erie Indemnity is Your Friend, Heres Why
03/18/2024
7
Intercontinental , Freddie Mac Join to Enhance Loan Quality
03/20/2024
8
Do Erie Indemnitys Earnings Warrant Your Attention
03/21/2024
9
Acquisition by Lorianne Feltz of tradable shares of Erie Indemnity subject to Rule 16b-3
03/25/2024

About Erie Indemnity 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 Erie or other stocks. Alpha measures the amount that position in Erie Indemnity 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.
 2021 2022 2023 2024 (projected)
Price Earnings Ratio33.8343.5739.5520.2
Short Term Coverage Ratios191.990.710.820.78

Erie Indemnity Upcoming Company Events

As portrayed in its financial statements, the presentation of Erie Indemnity's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Erie Indemnity's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Erie Indemnity's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Erie Indemnity. Please utilize our Beneish M Score to check the likelihood of Erie Indemnity's management manipulating its earnings.
6th of March 2024
Upcoming Quarterly Report
View
25th of April 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
6th of March 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View

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When determining whether Erie Indemnity is a strong investment it is important to analyze Erie Indemnity'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 Erie Indemnity's future performance. For an informed investment choice regarding Erie Stock, refer to the following important reports:

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