Wilshire 5000 Index Fund Alpha and Beta Analysis
| WFIVX Fund | USD 28.59 0.06 0.21% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Wilshire 5000 Index. It also helps investors analyze the systematic and unsystematic risks associated with investing in Wilshire 5000 over a specified time horizon. Remember, high Wilshire 5000'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 Wilshire 5000's market risk premium analysis include:
Beta 1.03 | Alpha 0.0142 | Risk 0.76 | Sharpe Ratio 0.0981 | Expected Return 0.0744 |
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.
Wilshire |
Wilshire 5000 Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Wilshire 5000 market risk premium is the additional return an investor will receive from holding Wilshire 5000 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 Wilshire 5000. 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 Wilshire 5000's performance over market.| α | 0.01 | β | 1.03 |
Wilshire 5000 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 Wilshire 5000's Buy-and-hold return. Our buy-and-hold chart shows how Wilshire 5000 performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Wilshire 5000 Market Price Analysis
Market price analysis indicators help investors to evaluate how Wilshire 5000 mutual fund reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Wilshire 5000 shares will generate the highest return on investment. By understating and applying Wilshire 5000 mutual fund market price indicators, traders can identify Wilshire 5000 position entry and exit signals to maximize returns.
Wilshire 5000 Return and Market Media
The median price of Wilshire 5000 for the period between Fri, Jan 19, 2024 and Thu, Apr 18, 2024 is 29.04 with a coefficient of variation of 2.75. The daily time series for the period is distributed with a sample standard deviation of 0.8, arithmetic mean of 28.89, and mean deviation of 0.67. The Fund received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | New iShares ETF Targets BBB-Rated Bonds - AOL | 03/18/2024 |
2 | These Banks Almost Failed the Stress Tests - AOL | 04/02/2024 |
About Wilshire 5000 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 Wilshire or other funds. Alpha measures the amount that position in Wilshire 5000 Index 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 Wilshire 5000 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, Wilshire 5000's short interest history, or implied volatility extrapolated from Wilshire 5000 options trading.
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Check out Wilshire 5000 Backtesting, Portfolio Optimization, Wilshire 5000 Correlation, Wilshire 5000 Hype Analysis, Wilshire 5000 Volatility, Wilshire 5000 History and analyze Wilshire 5000 Performance. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Wilshire 5000 technical mutual fund 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, fund market cycles, or different charting patterns.