Caesars Entertainment Jensen Alpha
| CZR Stock | | | USD 28.01 -0.11 -0.39% |
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 Caesars Entertainment's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
With Jensen Alpha at 0.3361, Caesars Entertainment shows positive alpha — return above what market exposure alone would predict. Caesars Entertainment has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.3361 | |
| ER[a] | = | Expected return on investing in Caesars Entertainment |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Caesars Entertainment and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Caesars Entertainment falls above the -0.1 peer average for Jensen Alpha. Rush Street Interactive leads at 0.4012 while Whirlpool registers the lowest at -0.6816. Caesars Entertainment has generated more 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 Caesars Entertainment 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.
Caesars Entertainment's Jensen Alpha reads
0.34 while Maximum Drawdown reads
22.98 , a
68.38 ratio between the two. This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Caesars Entertainment.
Methodology, Assumptions & Data Sources
The current Jensen Alpha for Caesars Entertainment is 0.3361. Caesars Entertainment's Jensen Alpha is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Caesars Entertainment operates in the consumer discretionary sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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