AdvisorShares Restaurant Jensen Alpha
| EATZ ETF | | | USD 27.02 0.00 0.00% |
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 AdvisorShares Restaurant's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
The Jensen Alpha of
-0.02 for AdvisorShares Restaurant indicates slightly negative alpha — return marginally below the CAPM-predicted level. AdvisorShares Restaurant has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.02 | |
| ER[a] | = | Expected return on investing in AdvisorShares Restaurant |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between AdvisorShares Restaurant and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, AdvisorShares Restaurant's Jensen Alpha of -0.0242 is below the 0.11 group average. The range runs from -0.0793 (Amplify Weight Loss) to 0.3487 (Matthews China Discovery). AdvisorShares Restaurant 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 AdvisorShares Restaurant 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.
Compare AdvisorShares Restaurant to PeersMethodology, Assumptions & Data Sources
AdvisorShares Restaurant's Jensen Alpha currently stands at -0.02. The Jensen Alpha for AdvisorShares Restaurant is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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