WisdomTree High Jensen Alpha
| DHS ETF | | | USD 110.17 -0.33 -0.30% |
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 WisdomTree High's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At 0.0177, WisdomTree High exhibits positive alpha — return above what market exposure alone would predict in Jensen Alpha. WisdomTree High has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.0177 | |
| ER[a] | = | Expected return on investing in WisdomTree High |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between WisdomTree High and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, WisdomTree High's Jensen Alpha of 0.0177 is below the 0.06 group average. The range runs from -0.0376 (iShares Consumer Staples) to 0.2381 (Columbia EM Core). WisdomTree High 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 WisdomTree High 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.
Comparing Jensen Alpha (
0.02 ) to Maximum Drawdown (
3.02 ) for WisdomTree High yields a
170.84 multiple. This indicates Maximum Drawdown substantially exceeds Jensen Alpha for WisdomTree High.
Methodology, Assumptions & Data Sources
WisdomTree High has a current Jensen Alpha reading of 0.0177. This Jensen Alpha reading for WisdomTree High results from applying the indicator's calculation rules to price and volume data over the selected window. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. The output reflects the selected calculation window — changing the horizon will produce different readings. This ETF metric is provided for analytical reference.
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