Ardelyx Jensen Alpha
| ARDX Stock | | | USD 6.98 -0.12 -1.69% |
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 Ardelyx's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At 0.0725, Ardelyx exhibits positive alpha — return above what market exposure alone would predict in Jensen Alpha. Ardelyx has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.0725 | |
| ER[a] | = | Expected return on investing in Ardelyx |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Ardelyx and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, Ardelyx's Jensen Alpha of 0.0725 is below the 0.13 group average. The range runs from -1.2079 (Upstream Bio) to 1.35 (Spyre Therapeutics). Ardelyx 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 Ardelyx 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.
Ardelyx's Maximum Drawdown of
19.80 runs about
273.12 times its Jensen Alpha of
0.07 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Ardelyx.
Methodology, Assumptions & Data Sources
Ardelyx has a current Jensen Alpha reading of 0.0725. The Jensen Alpha for Ardelyx is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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