Jensen Alpha Indicator
Momentum 0
Sell Peaked
Oversold | Overbought |
Investor Education after-hype prediction price | $ 0.0 |
Select Equity |
Investor Education Additional Predictive Modules
Most predictive techniques to examine Investor price help traders to determine how to time the market. We provide a combination of tools to recognize potential entry and exit points for Investor using various technical indicators. When you analyze Investor charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.| Cycle Indicators | ||
| Math Operators | ||
| Math Transform | ||
| Momentum Indicators | ||
| Overlap Studies | ||
| Pattern Recognition | ||
| Price Transform | ||
| Statistic Functions | ||
| Volatility Indicators | ||
| Volume Indicators |
Jensen Alpha In A Nutshell
Let us use this in an example. You are searching funds and find two that are the same return and other stats. Using the Jensen Alpha, you may be able to see which one is taking on less risk to obtain those returns compared to the other that may be using more risk to generate those returns. That means one may have greater volatility and many investor attempt to eliminate that aspect of the portfolio.
Alpha is the measure of return for a given equity, portfolio, or investment. This data point is what we want to maximize without increasing factors such as risk or cost. Jensen Alpha measures return but takes into account a risk-adjusted aspect of the alpha. Using this alpha will also utilize CAPM and take into account the product or portfolio beta number. Beta is the correlation to the underlying market and how it reacts, with a 1 being a lock step with the underlying.
Closer Look at Jensen Alpha
Everybody looks at returns and the factors that go into them individually, but we all are searching for the same. Less risk for greater returns. Jensen Alpha helps to take into account the risk aspect but that doesn’t mean it is the stopping point, but merely a directional indicator. Look at fundamentals and historical performance to gain a better understand and what you can expect going forward.
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