Chemours Jensen Alpha
| CC Stock | | | USD 25.26 2.22 9.64% |
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 Chemours's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
The current Jensen Alpha of 0.7235 places Chemours at positive alpha — return above what market exposure alone would predict. Chemours has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.7235 | |
| ER[a] | = | Expected return on investing in Chemours |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Chemours and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Chemours falls below the 7.8 peer average for Jensen Alpha. Trinseo SA leads at 145.24 while Quaker Chemical registers the lowest at -0.2487. Chemours 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 Chemours 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.
With Jensen Alpha at
0.72 and Maximum Drawdown at
25.71 , Chemours shows a
35.53 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Chemours.
Methodology, Assumptions & Data Sources
Chemours has a current Jensen Alpha reading of 0.7235. Chemours' Jensen Alpha is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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