Alamo Jensen Alpha
| ALG Stock | | | USD 166.20 -4.65 -2.72% |
Jensen Alpha measures the return attributable to active skill rather than passive market exposure. It is the residual return after subtracting the risk-free rate and the beta-adjusted market premium — the return the asset should have earned based solely on its systematic risk. Below is Alamo's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Alamo carries a Jensen Alpha of
-0.22, consistent with slightly negative alpha — return marginally below the CAPM-predicted level. Alamo has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.22 | |
| ER[a] | = | Expected return on investing in Alamo |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Alamo and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
The peer group averages 0.08 for Jensen Alpha, with Alamo at -0.2193 falling below that level. Readings span -0.7462 (Upwork Inc) to 0.5519 (First Advantage Corp). Alamo has generated less excess return relative to its market exposure than the peer group average.
Jensen Alpha Relative To Other Indicators
The chart below plots Jensen Alpha against Maximum Drawdown for Alamo and its peers. Each point represents one equity — position along the horizontal axis shows Jensen Alpha while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Compare Alamo to PeersMethodology, Assumptions & Data Sources
Alamo has a current Jensen Alpha reading of -0.22. The Jensen Alpha for Alamo applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Alamo operates in the industrials sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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