Aviat Networks Jensen Alpha
| AVNW Stock | | | USD 16.47 1.38 9.15% |
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 Aviat Networks's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At
-0.32, Aviat Networks's Jensen Alpha indicates slightly negative alpha — return marginally below the CAPM-predicted level. Aviat Networks has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.32 | |
| ER[a] | = | Expected return on investing in Aviat Networks |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Aviat Networks and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Aviat Networks's Jensen Alpha of -0.3175 falls below the 0.14 peer average. Values range from -0.3619 (Information Services Group) to 1.01 (Inseego Corp), with wide dispersion across the group. Aviat Networks 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 Aviat Networks 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 Aviat Networks to PeersMethodology, Assumptions & Data Sources
The current Jensen Alpha for Aviat Networks is -0.32. Aviat Networks' Jensen Alpha is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Aviat Networks operates in the information technology sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
Other Technical Indicators