ConnectOne Bancorp Total Risk Alpha
| CNOB Stock | | | USD 29.90 -0.01 -0.03% |
Total Risk Alpha measures the excess return of an asset after comparing its performance to a benchmark portfolio matched to the same total risk level. Unlike Jensen Alpha, which adjusts for systematic risk (beta) only, Total Risk Alpha accounts for total volatility. Below is ConnectOne Bancorp's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
The current Total Risk Alpha of 0.1301 places ConnectOne Bancorp at positive alpha — return above what market exposure alone would predict. ConnectOne Bancorp has generated modest excess return beyond what its systematic risk exposure explains.
Total Risk Alpha | = | RFR + (ER[b] - ER[a]) | x | STD[a] / STD[b] |
| = | 0.1301 | |
| ER[a] | = | Expected return on investing in ConnectOne Bancorp |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on ConnectOne Bancorp |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Relative to peers, ConnectOne Bancorp's Total Risk Alpha is above the group average of 0.04. Peer readings range from -0.1599 (FirstSun Capital Bancorp) to 0.1279 (Preferred Bank), reflecting wide dispersion across the sector. ConnectOne Bancorp has generated more excess return relative to its market exposure than the peer group average.
Total Risk Alpha Relative To Other Indicators
The chart below plots Total Risk Alpha against Maximum Drawdown for ConnectOne Bancorp and its peers. Each point represents one equity — position along the horizontal axis shows Total Risk 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.
ConnectOne Bancorp's Maximum Drawdown of
7.69 runs about
59.12 times its Total Risk Alpha of
0.13 . This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for ConnectOne Bancorp.
Methodology, Assumptions & Data Sources
ConnectOne Bancorp has a current Total Risk Alpha reading of 0.1301. Total Risk Alpha for ConnectOne Bancorp 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. ConnectOne Bancorp operates in the financial services 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.
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