Digimarc Total Risk Alpha
| DMRC Stock | | | USD 7.29 0.33 4.74% |
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 Digimarc's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
Digimarc's Total Risk Alpha of 0.5163 reflects positive alpha — return above what market exposure alone would predict. Digimarc 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] |
| = | 0.5163 | |
| ER[a] | = | Expected return on investing in Digimarc |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on Digimarc |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Digimarc falls above the -0.04 peer average for Total Risk Alpha. ON24 Inc leads at 0.5848 while Waldencast Acquisition Corp registers the lowest at -0.9312. Digimarc 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 Digimarc 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.
With Total Risk Alpha at
0.52 and Maximum Drawdown at
32.32 , Digimarc shows a
62.60 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for Digimarc.
Methodology, Assumptions & Data Sources
The current Total Risk Alpha for Digimarc is 0.5163. The Total Risk Alpha for Digimarc applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Digimarc operates in the information technology sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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