Avista Jensen Alpha
| AVA Stock | | | USD 40.57 -0.01 -0.02% |
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 Avista's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At
-0.05, Avista's Jensen Alpha indicates slightly negative alpha — return marginally below the CAPM-predicted level. Avista has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.05 | |
| ER[a] | = | Expected return on investing in Avista |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Avista and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Avista's Jensen Alpha of -0.0525 falls below the 0.04 peer average. Values range from -0.1709 (Hawaiian Electric Industries) to 0.3922 (Companhia Paranaense de), with wide dispersion across the group. Avista 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 Avista 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 Avista to PeersMethodology, Assumptions & Data Sources
The current Jensen Alpha for Avista is -0.05. Jensen Alpha for Avista is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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