Alpha in stocks Alphais another measure of risk in addition to beta that measures returns after adjusting for overall market volatility and random fluctuation. An alpha calculation of zero suggests that a stock has earned a return equal to the risk. An alpha above zero means an investment outper...
high Western Asset'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 Western Asset's market risk premium analysis include:...
In this lesson, learn about the alpha and beta values of stocks. Understand what these values represent. Find examples of high beta stocks and low beta stocks. Updated: 11/21/2023 Table of Contents Beta Value of Stocks Alpha Value of Stocks Lesson Summary Frequently Asked Questions Is a ...
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...
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...
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as MetLife. It also helps investors analyze the systematic and unsystematic risks associated with investing in MetLife over a specified time horizon. Remember, high MetLife's alph...
Let’s say over the last year, the Straits Times Index returned 4% and the stock returned 10%, or 6% over the benchmark index; this would give the stock an alpha value of 6. If the stock had instead lost 2% in value, it would then have an alpha value of -6. ...
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 management indicators for mutual funds, stocks, and bonds. In a sense, it tells investors whether an asset has consistently performed better or ...
About Alpha Correlated Beta Born and raised in Northeast Ohio. I worked for a couple of Regional Banks, grew up with Merrill and now am at a Regional Firm based out of Louisville. Education is a BS in Applied Mathematics, another BS in History, MBA studies all at Ohio schools. I have ...
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