Southwest Airlines Stock Alpha and Beta Analysis
| LUV Stock | USD 29.30 0.16 0.54% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Southwest Airlines. It also helps investors analyze the systematic and unsystematic risks associated with investing in Southwest Airlines over a specified time horizon. Remember, high Southwest Airlines' 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 Southwest Airlines' market risk premium analysis include:
Beta 0.8 | Alpha (0.06) | Risk 2.53 | Sharpe Ratio (0.0004) | Expected Return (0) |
Southwest Airlines Quarterly Cash And Equivalents |
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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.
Southwest |
Southwest Airlines Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Southwest Airlines market risk premium is the additional return an investor will receive from holding Southwest Airlines 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 Southwest Airlines. 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 Southwest Airlines' performance over market.| α | -0.06 | β | 0.80 |
Southwest Airlines 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 Southwest Airlines' Buy-and-hold return. Our buy-and-hold chart shows how Southwest Airlines performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Southwest Airlines Market Price Analysis
Market price analysis indicators help investors to evaluate how Southwest Airlines stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Southwest Airlines shares will generate the highest return on investment. By understating and applying Southwest Airlines stock market price indicators, traders can identify Southwest Airlines position entry and exit signals to maximize returns.
Southwest Airlines Return and Market Media
The median price of Southwest Airlines for the period between Fri, Jan 26, 2024 and Thu, Apr 25, 2024 is 29.93 with a coefficient of variation of 7.78. The daily time series for the period is distributed with a sample standard deviation of 2.38, arithmetic mean of 30.65, and mean deviation of 2.1. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
| Southwest Airlines dividend paid on 27th of March 2024 | 03/27/2024 |
1 | The Dallas Morning News Plans Full Coverage of the Total Eclipse | 04/01/2024 |
2 | Exclusive-Southwests expected 2024 Boeing jet deliveries keep shrinking, sources say | 04/11/2024 |
3 | Southwest Airlines to launch nonstop flight from Nashville this spring | 04/15/2024 |
4 | Flying out of Boise Airport These airlines offer the best reward programs to save money | 04/16/2024 |
5 | Southwest Airlines adds more nonstop flights to BNA | 04/17/2024 |
6 | Smalls Sliders and Pantone Blend Culinary Creativity to Craft Smorange | 04/18/2024 |
7 | Southwest, Stop Air Planes Avoid Runway Collision By Less Than 400 Feet in Washington D.C. | 04/19/2024 |
8 | Rare Bird Sighting Continues To Draw Crowds To LI Womans Bird Feeder | 04/22/2024 |
About Southwest Airlines 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 Southwest or other stocks. Alpha measures the amount that position in Southwest Airlines 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 | 2023 | 2024 (projected) | Dividend Yield | 0.0249 | 0.0224 | 0.0235 | Price To Sales Ratio | 1.61 | 0.66 | 1.08 |
Southwest Airlines Upcoming Company Events
As portrayed in its financial statements, the presentation of Southwest Airlines' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Southwest Airlines' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Southwest Airlines' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Southwest Airlines. Please utilize our Beneish M Score to check the likelihood of Southwest Airlines' management manipulating its earnings.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 25th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Build Portfolio with Southwest Airlines
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 Southwest Airlines Backtesting, Southwest Airlines Valuation, Southwest Airlines Correlation, Southwest Airlines Hype Analysis, Southwest Airlines Volatility, Southwest Airlines History and analyze Southwest Airlines Performance. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Complementary Tools for Southwest Stock analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' 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 Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.
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Southwest Airlines 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.