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12 wrz 2024 · Both alpha and beta are historical measures of past performances. Alpha shows how well (or badly) a stock has performed in comparison to a benchmark index. Beta indicates how volatile a...
21 sie 2023 · Alpha is a measure of an investment's performance in relation to a benchmark and beta is a measure of price volatility compared to a benchmark. Both metrics can be used in...
17 paź 2023 · In investing, alpha and beta are complementary performance indicators that relate an asset’s growth and volatility to a suitable benchmark. Beta, alpha and beta coefficients are mathematically defined and based on publicly available information; they can’t be fudged, fabricated, or misconstrued.
29 maj 2023 · Key Points to Consider for Alpha and Beta. Alpha is always positive, while Beta can be positive or negative. Alpha reflects the possibility of high stock price performance, while Beta reflects the volatility of a security. Alpha is used to calculate risk-adjusted returns, while Beta is not.
29 lip 2024 · Alpha and beta are two different parts of an equation used to explain the performance of stocks and investment funds. Beta is a measure of volatility relative to a benchmark, such as the S&P...
Conversely, a high-beta stock with returns exceeding expectations based on its beta would exhibit a positive alpha, denoting exceptional performance. In summary, beta helps investors gauge risk, while alpha measures the reward from taking that risk.
Alpha is used to evaluate whether an investment outperformed a certain benchmark. Beta, on the other hand, measures how volatile an asset is compared to the overall market.
