Bank of America Jensen Alpha
| BAC-PK Preferred Stock | | | USD 24.98 0.03 0.12% |
This reference covers Jensen Alpha for Bank of America, with current readings, historical data, and sector peer comparisons. The reading's significance depends on context — the instrument's own range and sector norms. Use
Bank of America Volatility alongside
Bank of America Price History to build context for Bank of America.
Current Jensen Alpha Value
Bank of America carries a Jensen Alpha of 0.0225, consistent with positive alpha — return above what market exposure alone would predict. Bank of America has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.0225 | |
| ER[a] | = | Expected return on investing in Bank of America |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Bank of America and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, Bank of America's Jensen Alpha of 0.0225 is below the 0.07 group average. The range runs from -0.1054 (Wells Fargo) to 0.2021 (Citigroup). Bank of America 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 Bank of America 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.
The Maximum Drawdown-to-Jensen Alpha ratio for Bank of America sits near
80.16 , with Jensen Alpha at
0.02 and Maximum Drawdown at
1.80 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Bank of America.
Methodology, Assumptions & Data Sources
Bank of America has a current Jensen Alpha reading of 0.0225. The Jensen Alpha for Bank of America is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
Other Technical Indicators