Alpha measures a manager's skill in adding value to a portfolio beyond market gains. Beta assesses how a stock or fund's volatility compares to the market average. High alpha and low beta indicate ...

Alpha and beta are metrics that can help investors decide whether (or not) to buy an investment based on its risk and return profile. ... If the stock returned 8%, the alpha would be –2.

'Alpha’ tells investors how a security has historically performed vs. a benchmark while ‘beta’ shows volatility over time vs. the market. Learn more about their differences and uses.

Beta, a measure of a stock's volatility relative to the overall market, is one of the most popular indicators of risk. Here's how to read it. ... The Differences Between Alpha and Beta .

Alpha and beta are two statistical measurements used in modern portfolio theory (MPT) to help investors determine the risk-return profile of an investment. Both are measures of past performance ...

Mean, standard deviation, alpha, beta, correlation: Here are 5 statistical tools to help you take informed investment decisions For a better experience, Read this story in our App SENSEX 81,896.79 ...

A beta above 1 means the stock is more volatile, while a beta below 1 means it is less volatile. Calculating beta involves ...

Beta and alpha are terms you often hear in investment circles. ... In the Nifty 50 Index, the top stock has a weight of 11%, whereas the last stock has a weight of less than 0.5%.

Smart beta vs alpha – is an actively managed fund superior to passive management? It is a long-running debate with active funds having to beat the average of their passive peers over a certain ...

Alpha and beta are two terms that get thrown around a lot in investing. ... For example, if a stock fund returned 12 percent and the S&P 500 returned 10 percent, the alpha would be 2 percent.