Overview of Alpha and Beta in the Stock Market AlphaandBetaare two important measures used in finance to evaluate the performance of an investment compared to its standard. Alphais a measure of an investment’s performance that cannot be attributed to the performance of the market as a whole. ...
2. The second item in a series or system of classification. 3. A mathematical measure of the sensitivity of rates of return on a portfolio or a given stock compared with rates of return on the market as a whole. A beta of 1.0 indicates that an asset closely follows the market; a beta...
Alpha is a measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. For example, if a mutual fund returned 10% in a year in which the S&P 500 rose only 5%, that fund would have a higher alpha. Conversely...
A pre-release of software that is given out to a large group of users to try under real conditions. Beta versions have gone through alpha testing in-house and are generally fairly close in look, feel and function to the final product; however, design changes often occur as a result. ...
OB Stock USD 4.40 0.11 2.56% This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Outbrain. It also helps investors analyze the systematic and unsystematic risks associated with investing in Outbrain over a specified time ...
在投资领域中,Alpha因子和"风险因子"是两个重要的概念,可以帮助投资者理解和分析投资回报。Alpha代表了投资组合相对于基准指数的超额回报,而Beta风险因子则是影响投资回报的市场风险源。我们使用统计模型来进行演示区分这两者,比如著名的资本资产定价模型(CAPM)。
A high alpha stock is considered a higher risk. However, it also provides higher returns to investors. What are low beta stocks? Low beta stocks are stocks with a beta value that is less than 1. This means that the stock is less volatile than the market and is, therefore, less risky....
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Alpha and beta are two of the key measurements used to evaluate the performance of a stock, a fund, or an investment portfolio. Alpha measures the amount that the investment has returned in comparison to the market index or other broad benchmark that it is compared against. Beta measures the...
If a stock or fund outperforms the market for a year, it is probably because of beta or random luck rather than alpha. Defining Alpha Alpha is the excess return on an investment after adjusting for market-related volatility and random fluctuations. Alpha is one of the five major risk manage...