Slow brainwave activity state of hypnosis (resting but awake). Also known as hypnoidal. Alpha is slower (deeper) than Beta, the awake state, and faster than Theta, a deep hypnotic state.
This is defined as the differential return generated by a portfolio over its benchmark. A positive alpha indicates that a portfolio has outperformed its benchmark over the period, whereas a negative alpha indicates that the portfolio has underperformed.
A Share's alpha is an analyst's estimate of its potential price increase based on the rate at which the company's earnings are growing and other aspects of the company's current performance. For example, if a Share has an alpha of 1.15, that means the analyst expects a 15% price increase in a year when Share prices in general are flat. One investment strategy is to look for shares whose alphas are high, which means the shares are undervalued and have the potential to provide a strong return. A share's alpha is different from its beta, which estimates its price volatility in relation to the market as a whole.
A measure of the manager's contribution to performance, is expressed as an annual compounded rate of return, adjusted for risk. Alpha represents the difference between the actual performance and the expected performance of a fund given its volatility (or risk). The expected value for alpha is zero. If positive, the fund has achieved a return above that expected for its volatility. A negative alpha reflects fund performance below that expected for its volatility.
A measure of a fund's risk-adjusted return. Alpha measures the difference between a fund's actual returns and its expected performance given its level of risk (as measured by beta). A positive alpha indicates the fund has performed better than expected, given its beta; while a negative alpha indicates the fund has underperformed. The usefulness of the Alpha measure is entirely dependent upon the quality of the beta measure.
A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative alpha indicates the fund's underperformance, given the expectations established by the fund's beta.
The alpha of a security or fund is its out-performance over the risk adjusted return, with risk measured by beta.... more on: Alpha
The sensitivity of a thermistor to change its resistance in response to a change in temperature. The units are ohms per Ohm per °C but usually written as % change per °C. Also called temperature coefficient.
A state of the mind where brainwave activity slows down during which we experience hypnosis and which we pass through on the way to and from sleeping state.
Stage one in the testing of a new software program. Call it a 'bug probe' if you like. Comes before the 'beta' version.
A coefficient measuring the risk-adjusted performance, considering the risk due to the specific security, rather than the overall market. A large alpha indicates that the stock or mutual fund has performed better than would be predicted given its beta ( volatility).
Measures the difference between a fund's actual returns and its expected performance, given its level of risk (as measured by beta). A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates a fund has underperformed, given the expectations established by the fund's beta.
Difference between the expected return of the sector fund and the "fair return" for the fund based on its historical responsiveness to market movements. More on CAPM
An estimate expressed as a coefficient that measures how a stock will perform based solely on its inherent value (e.g., growth in earnings per share), independent of market movements. This is in contrast to Beta, which indicates return based on share volatility. lternative Risk Transfer A term used to describe a broad range of innovative, customized products used to manage a client's total risk, including insurance, financial and business risks. The ART market encompasses a variety of mechanisms including captives, finite risk insurance, and securitization of risk.
A statistical measure of the difference between an investment's actual and expected performance, considering its risk level as measured by beta. A positive alpha indicates that past returns exceeded expectations, whereas a negative alpha indicates that past returns were lower than what the investment's beta predicted. Alpha, along with beta and R-squared, are key components of Modern Portfolio Theory. You can look up the alpha for a mutual fund in the Vision Mutual Fund Center, and you can also use it as a mutual fund screening criterion. See also Sharpe ratio.
The premium an investment earns above a set standard. Or the excess return earned by a mutual fund manager over a benchmark index like the BSE Sensex or S&P CNX Nifty.
A percentage that is a measure of the returns of a fund with its risk adjusted for. Alpha is calculated from the difference between a fund's actual returns and its expected returns given its market risk level as measured by its beta. It is also a measure of the value added or deducted by the fund's manager. An alpha of 1 means the fund produced a return 1% higher than what its beta would predict. An alpha of –1 means the fund produced a return 1% lower. Naturally, higher the alpha the better it is for the investor. No, not always. For a high alpha to be better, simultaneously, another number called the R-squared should be high enough too. Normally, with R-squared anywhere below 50, never trust the alpha however high. Alpha depends entirely on the accuracy of beta. And beta again, is calculated by the R-squared. So if you believe that beta is the definite value for risk then any positive alpha would be a sufficient condition for a fund's good performance.
A new processor from Digital Equipment Corporation. It allows faster processing than the old VAX CPUs and has recently become one of the fastest CPUs that you can buy. Return
(slang) Someone who is in a constant alpha (i.e., inattentive) brainwave state, sometimes due to television. See also: Going alpha.
A statistic that measures a stock's ability to perform in relation to those in its industry or the rest of the market.
The first testing stage of a new program. The alpha stage occurs before a program becomes a beta version.
The brainwave state associated with a light hypnotic state (8-14HZ) or beginning meditative state. Alpha is experienced when you doze off to sleep and as you awaken--also during daydreaming. This state of relaxed detached awareness is conducive for lucid and vivid visualization. But it's most important function as a brainwave state is that it provides a link between the conscious and subconscious mind. Generating alpha brainwaves is required for remembering dreams upon waking.
A numeric value representing the excess rate of return to a given benchmark.
first in order of importance; "the alpha male in the group of chimpanzees"; "the alpha star in a constellation is the brightest or main star"
a delta who rises from the dead more powerful then ever
The expected excess return or the expected residual return
A measure of a portfolio's return in excess of the market return, both adjusted for risk. It is a measure of the manager's contribution to performance due to security selection. A positive alpha indicates that the portfolio outperformed the market on a risk-adjusted basis, and a negative indicates the portfolio did worse than the market.
See Temperature coefficient of resistance (alpha, ).
A measure of stock quality that compares the performance of an individual stock relative to the market. An alpha value of 1 means that the stock has, on average, outperformed the market by 1% per month, so if the market moves up 10% in six months, the stock should move up 16%.
A measure of a portfolio's expected performance versus its actual returns, taking into account the portfolio's level of risk as measured using beta. A positive alpha means the portfolio has performed better than its beta would predict and vise versa.
The subject's risk-adjusted value added; i.e., the y intercept of the linear regression line through the subject series and the independent benchmark. A positive Alpha is the expected extra return awarded to the investor for taking a risk instead of accepting the benchmark return. For example, an alpha of 0.6% means the subject would be expected to outperform the beta-adjusted independent benchmark return by 0.6%, based on past performance. Past performance does not ensure similar performance in the future.
Definition - A measure of the extra return made over and above what the CAPM model predicts. According to the CAPM model, expected returns are a function of the risk-free rate, the portfolio's beta, and the market risk premium. Alpha, then, is the difference between your actual return and your expected return as measured by the CAPM equation. At AmeriCap - A high alpha indicates that a manager is performing well on a risk-adjusted basis - the return per unit of "risk" (i.e. standard deviation) is higher. Our investment process is designed to generate alpha for our clients.
The difference between a portfolio's return and the return of its appropriate benchmark, such as an index like the S&P 500. For example, if the S&P 500 rises by 5% over a period, and a fund rises by 7% over the same period, and the fund has a sensitivity (beta) of 1 to the Index, that fund can be said to have generated 2% Alpha.
A coefficient (a) indicating a manager's risk-adjusted excess rate of return relative to a benchmark. It measures a manager's "value-added" in selecting individual securities, independent of the effect of overall market movements. Most active investors are trying to maximise alpha.
Alpha can be used to calculate the "skill" of a fund manager. It measures the difference between a fund's actual returns and its expected performance, given its level of risk (as measured by beta). A positive alpha figure indicates the fund has performed better than its beta would predict. In contrast, a negative alpha indicates a fund has underperformed. A fund with Alpha in its name is typically one that relies heavily on a manager's skill, may not track to an index, and has freedom to hold substantial cash when outlook is poor.
A statistical measure that indicates the difference, positive or negative, between an asset’s return and its expected return, based on its beta relative to the return of a market benchmark. It is used as one measure of evaluating an assets risk adjusted performance.
Premium that an investment portfolio earns above a given point of reference; a measure of stock performance independent of the market.
An expression of how much a stock would have appreciated or depreciated on average on a daily basis over the last year, assuming the S&P 500 remained unchanged during the period. more...
Alpha reflects the value a manager adds to the portfolio over and above the benchmark he or she competes against. The higher the Alpha, the more impact the manager is having on the performance and success of the fund he or she directs.
Coefficient measuring the performance of an active portfolio versus a reference portfolio (benchmark) with comparable risk. A positive alpha indicates a risk-adjusted outperformance, while a negative alpha indicates a risk-adjusted underperformance.
This is the term used to describe the risk adjusted out performance of an investment. A large Alpha represents good performance relative to the benchmark. Alpha is calculated using monthly returns for the previous three years.
A fund's return when its benchmark's return is zero. It represents the performance of the fund in relation to its benchmark and can be used as a measure of the value added by the fund manager.
A measure of the difference between a mutual fund's actual returns and its expected performance, given its level of risk (as measured by beta). A positive alpha indicates that the fund had performed better than its beta would have predicted. A negative alpha indicates that the fund under-performed given the expectations established by the fund's beta.
The coefficient measuring the portion of an investment's return arising from specific (nonmarket) risk.
A measure of risk-adjusted performance considering the risk of the specific security rather than the overall market.
A numerical value indicating a manager's risk-adjusted return relative to a benchmark. The value alpha is the measure of the performance of a fund over the index. Alpha represents the expected rate of return for the fund when the rate of return for the index is zero. For example, if a fund has an alpha of 2.0, and the market return was 3% for a given month, then the fund would, return 6% for the month.
Alpha is a mathematical estimate of the amount of return expected from an investment's intrinsic values, such as the rate of growth in earnings per share. It describes that part of an investor's return that is due to the skills of the investment manager, as distinct from the return of the market as a whole. For example, an alpha of 1.25 indicates that a stock is projected to rise 25%, in price, in a year when the return on the market and the stock's beta are both zero. A large alpha indicates a stock or fund has performed better than would be predicted by its beta (volatility).
The premium an investment earns above a set standard. This is usually measured in terms of the DOW Industrials or the S&P 500. How the stock performs independent of the market.
Is a measure of the incremental reward (or loss) that an investor gained in relation to the market. Typically, this is measured as performance of a selected portfolio relative to a market benchmark. An enhanced S&P 500 portfolio might have an alpha of .25 which means that the pickup was .25% or a quarter point better than the standard.
Hedge Funds: the incremental return above the market that a manager generates.
This is a measurement of the risk of a mutual fund in relation to the market. A positive return shows that the fund outperformed the market and awards the investor for taking risk.
( Beta, Gamma, Epsilon, etc.) A prefix often used on star names based upon Greek Number equivalents Alpha = 1, Beta = 2, etc. as a designation of the order of star brightness in a constellation AS SEEN FROM EARTH. No relation to ACTUAL relative brightness of stars though- —the Names were just kept from earlier times.
Measures the relationship between the fund's performance and its beta over a three-year period.
A statistical term used to measure the contribution to portfolio performance from good stock selection.
A statistical way to evaluate the risk-adjusted momentum of an investment. Alpha incorporates both risk and reward.
The temperature coefficient of the change in electrical resistance of a material measured in ohms/ohm/¼C. It indicates the basic change in electrical resistance in a material for each ¼C in temperature. Alpha is a defining parameter for resistance temperature detectors (RTDs). For example, common alphas for platinum RTDs are 0.00385 //¼C (DIN) or 0.003916 //¼C (JIS).
Measure of a stock's performance beyond what its beta would predict. Also conveys active Management.
Alpha is defined as a measure of selection risk of a mutual fund in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return. The alpha compares the actual results of a portfolio with what would have been expected given the fund's beta and the market's behavior. It is often considered to represent the value the manager adds or subtracts from the fund's return.
A measure of selection risk (also known as residual risk) of a security in relation to the market. A positive alpha is the extra return rewarding the investor for taking a risk. A security with an alpha of 0.5 is considered to have outperformed the market-based return estimate by 0.5%.
Alpha measures a stock's monthly move if the S&P 500 index is unchanged. For example, a stock with a high alpha of 7 would be expected to rise 7% in a month given an unchanged S&P 500 index.
A measure of the projected rate of change in a stock or security's price that is not tied to market factors. Instead, this is based on indicators as the strength of the company's earnings and expected level of sales.
A measure of a portfolio manager's risk-adjusted excess rate of return relative to a benchmark. Alpha indicates the advantage of the potrfolio over the index and represents the rate of return of the portfolio when the rate of return of the index is assumed to be zero.
A mathematical measurement of the amount of return expected from an investment. For example, an alpha of 1.20 indicates that a stock is projected to rise 20% in a year when the return on the market and stock’s beta are both zero. Generally, a low priced investment in relation to its alpha is considered a good choice because of its undervalued status.
The alpha coefficient measures the portion of an investment's return arising from specific (non-market) risk. It can be a positive or a negative number. Often referred to as a manager's "value added" (or "value subtracted"), alpha measures the difference between actual returns and expected performance resulting from exposure to specific risk factors.
Measurement of the specific (residual) risk of a mutual fund compared with the market. A positive alpha value indicates added value that has benefited the investor who accepted a certain risk rather than simply opting for the return on the market. Therefore, alpha measures the value added by the fund manager.
The risk-adjusted excess return of a portfolio. Specifically, Alpha= Rp - rfr - (Beta * (Rb - rfr) where Rp=Portfolio Return, rfr=Risk-free Rate, and Rb=Return of the Benchmark. See Beta.
A measure of the difference between a fund's actual returns and its expected performance, given its level of risk as measured by beta. A positive alpha figure indicates the fund has performed better than expected given its beta. Conversely, a negative alpha indicates the fund's underperformance, given its beta.
excess return generated through security selection; can be negative or positive; a portfolio manager is said to have “added value†through security selection when the alpha is positive
A coefficient measuring a security's price volatility caused by factors other than the stock market in its entirety. Alpha calculates the amount of return expected from an investment's intrinsic value, such as the rate of growth in earnings per share. For instance, an alpha of 1.35 infers that a security is projected to increase 35% in price when the security's "beta" is zero. A security, whose price is low in relation to its alpha, is considered undervalued.
In a Jensen Index, a factor to represent the portfolio's performance that diverges from its beta, representing a measure of the manager's performance.
The abnormal return on an overvalued or undervalued investment. In predicting market rates of return, analysts employ various factors to determine whether the selected investment should produce a higher or lower return than the market. This in turn delivers a positive or negative alpha that may be useful in adjusting portfolios. A positive alpha indicates than an investment has earned on average a premium above that expected for the level of market variability. A negative alpha would indicate that the investment received on average a premium lower than that expected for the level of market variability. Alpha is therefore something of a performance indicator.
Alpha is the term used to describe the risk-adjusted out-performance of an investment. A positive alpha indicates that a fund has outperformed its respective benchmark and negative alpha indicates a measure of relative under-performance.
Alpha is a coefficient that measures the risk-adjusted performance, or the excess return, considering the risk due to the specific fund and its underlying investments, rather than the overall market. A high alpha indicates that the fund has performed better than would be predicted given its beta (volatility).
Alpha is the term used to describe the risk adjusted outperformance of an investment. A large alpha indicates good performance relative to the market.
beta emitter A radionuclide emitting/releasing an alpha/beta particle during radioactive decay
A positive number that indicates the core refractive index shape and ranges from one to infinity.
Measure of risk-adjusted performance. Alpha takes into account the volatility of a particular portfolio and matches the risk-adjusted performance of that portfolio against a benchmark index.
A statistical measurement used to determine the percentage of the change in a stock's price due to factors internal to the company, rather than to the stock market's fluctuations.
Alpha is an estimate of the return that can be expected from a share's fundamental characteristics, such as earnings growth.
A statistical measure of a security's price volatility caused by factors other than the stock market as a whole. (vs. Beta.)
The difference between a fund's actual returns versus its expected performance, given its level of market risk as measured by beta. A positive alpha indicates the fund performed better than its beta would predict while a negative alpha indicates the fund's underperformance based on the expectations indicated by the fund's beta.
A measure of performance in percentage above or below what would have been predicted by risk as suggested by its Beta. Positive alpha means a fund performed greater than its risk would suggest, while negative Alpha means the fund under performed.An ETF of Alpha 1.5 outperformed its index by 1.5% as predicted by its Beta.
The out-performance of a portfolio against the benchmark attributable to the manager's strategy.
Tells you how a fund is actually doing compared to its beta. If the beta is 1.5, and the fund rises 15% more than the market, then the alpha is zero.
A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return. For example, an alpha of 0.4 means the fund outperformed the market-based return estimate by 0.4 %. -0.6 means a fund's monthly return was 0.6 % less than would have been predicted from the change in the market alone.
The temperature coefficient of resistance of a material, derived from measurements at 0ºC and at 100ºC: {R sub{100} - R sub{0}} over {100 times R sub{0}}. It indicates the basic change in resistance in a material for each ºC change in temperature. It is a defining parameter for resistance temperature detectors (RTD's).
a measure of an investment's past returns relative to its risk (volatility); a high alpha means that the fund's returns have been high compared to an investment with similar risk.
Measures the value that an investment manager produces, by comparing the manager's performance to that of a risk-free investment (usually a Treasury bill). For example, if a fund had an alpha of 1.0 during a given month, it would have produced a return during that month that was one percentage point higher than the benchmark Treasury. Alpha can also be used as a measure of residual risk, relative to the market in which a fund participates.
Coefficient alpha, a measure of the internal consistency (reliability) of the test, considered to be an overall indicator of test quality. (See the journal references on the output listing for greater detail.)
When we measure a fund's performance compared to its benchmark index, alpha represents the theoretic performance of the fund when the benchmark represents a performance equal to zero. Alpha may be negative or positive. E.g. alpha equals 2 means that the fund's performance is equal to 2% when the benchmark's performance is 0. Alpha is thus an indicator measuring the contribution of the manager to the performance of the fund.
A numerical value indicating excess rate of return relative to a benchmark. As it applies to hedge funds, it is a manager's "value-added" in selecting securities.
The expected return from a security or a portfolio based on the assumption that the return from the market is zero. Sometimes known as stock specific risk. The measure shows a manager's ability to select securities which will perform independent of overall market movements.
An alpha version of a game is a version where you can play through a level of the game from start to finish. (See also Beta)
Alpha measures the difference between a fund's actual results and the results that a statistically average fund having the same beta in the same category would be expected to achieve. It is calculated with linear regression, a statistical routine, using 36 monthly observations.Alpha measures the difference between a fund's actual results and the results that a statistically average fund having the same beta in the same category would be expected to achieve. It is calculated with linear regression, a statistical routine, using 36 monthly observations.
A measure of a fund's risk-adjusted return. Alpha can be used to directly measure the value added or subtracted by a fundâ€(tm)s manager. It is calculated by measuring the difference between a fund's actual returns and its expected performance given its level of market risk as measured by beta. An alpha of 1.0 means the fund produced a return 1% higher than its beta would predict. An alpha of –1.0 means the fund produced a return 1% lower. The accuracy of an alpha rating depends on two factors: 1) the assumption that market risk, as measured by beta, is the only risk measure necessary; 2) the strength of fundâ€(tm)s correlation to a chosen benchmark such as the S&P 500. Correlation is measured by R-squared. An R-squared of less than 50 makes a fundâ€(tm)s alpha rating virtually meaningless.
A measure of risk-adjusted performance calculated by regressing the security's excess return on the S&P 500 excess return.
The first stage of development for a game. (see Beta, Gold)
This is a risk-adjusted statistic that measures a portfolio's return in excess of the market return (typically in reference to the S&P 500). The “alpha” measures a portfolio manager's contribution to performance. A positive alpha indicates that a portfolio manager delivered superior performance for the level of market exposure.
Yield indicator based on the risk of a security or a portfolio in relation to the market risk. A positive Alpha indicates the extra yield of the security or portfolio awarded to the investor for having taken a risk, rather than simply accepting the average market return. Thus, an alpha of 0.5 means that the security or portfolio has outperformed the estimated market-based return by 0.5%. See also Beta. Français: Alpha Español: Alfa
An investment's Alpha indicates the return it is expected to earn, on average, when the market is flat.
In the CAPM, the risk-adjusted excess return of an asset. The difference between the asset's return and the capital market line.
Alpha (Α) is a measure of "excess return" (a fund's performance over and above the market's rate of return). As such, it represents the value-added return that can be attributed to the hedge fund manager's actions rather than to the performance of the market overall.
A measure of the residual risk that an investor takes for investing in a fund rather than a market index. It represents the difference between a mutual fund's actual performance and the performance that would be expected based on the level of risk taken by the fund's manager. If a fund produced the expected return for the level of risk assumed, the fund would have an Alpha of zero. A positive Alpha indicates the manager produced a return greater than expected for the risk taken. A negative Alpha indicates the manager has not adequately rewarded investors for the risks taken.
Arms Index ascending tops
Can be expressed as a positive or negative number. Commonly known as the 'extra return' a fund manager can provide relative to the market's risk. Alpha measures the difference between actual returns and expected performance resulting from exposure to specific risk factors.
Alpha is a statistical measure that allows an investor to determine the portion of a stock or mutual fund's return that arises from non-market risks, such as the rate of growth in earnings per share. It is different from the amount of return caused by volatility, which is measured by the beta coefficient. For example, an alpha of 1.25 indicates that a stock is projected to rise 25% in price when the stock's beta is zero. See: Beta
A mathematical measure of price volatility that attempts to isolate price movements of a stock from those of the market. When a stock is said to have a high alpha, it is expected to perform well regardless of what happens to the market as a whole.
Limited Edition Alpha (or just Alpha for short) was the first print run. It premiered in a limited release at Origins International Game Expo in 1993, with a general release that August. Its print run of 2.6 million cards sold out very quickly and was replaced by Limited Edition's Beta print run.
Alpha is a risk-adjusted measure of the so-called "excess return" on an investment. It is a common measure of assessing active manager's performance as it is the return in excess of a benchmark index or "risk-free" investment.