Diamond Hill Total Risk Alpha
| DHIL Stock | | | USD 174.99 -0.01 -0.01% |
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 Diamond Hill's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
Diamond Hill has a Total Risk Alpha of 0.028, indicating positive alpha — return above what market exposure alone would predict. Diamond Hill 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] |
| = | 0.028 | |
| ER[a] | = | Expected return on investing in Diamond Hill |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on Diamond Hill |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Diamond Hill falls above the -0.1 peer average for Total Risk Alpha. Eagle Pointome leads at 0.0421 while Stellus Capital Investment registers the lowest at -0.2977. Diamond Hill 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 Diamond Hill 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.
The Maximum Drawdown-to-Total Risk Alpha ratio for Diamond Hill sits near
38.77 , with Total Risk Alpha at
0.03 and Maximum Drawdown at
1.09 . This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for Diamond Hill.
Methodology, Assumptions & Data Sources
The current Total Risk Alpha for Diamond Hill is 0.028. This Total Risk Alpha reading for Diamond Hill results from applying the indicator's calculation rules to price and volume data over the selected window. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Diamond Hill operates in the financial services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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