Edesa Biotech Jensen Alpha
| EDSA Stock | | | USD 17.43 2.44 16.28% |
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 Edesa Biotech's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Edesa Biotech has a Jensen Alpha of 5.84, indicating strong positive alpha — return materially above what market exposure alone would predict. Edesa Biotech has generated returns well beyond what its beta-adjusted market risk explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 5.84 | |
| ER[a] | = | Expected return on investing in Edesa Biotech |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Edesa Biotech and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Relative to peers, Edesa Biotech's Jensen Alpha is above the group average of 0.11. Peer readings range from -1.4967 (BioRestorative Therapies) to 3.16 (Sensei Biotherapeutics), reflecting wide dispersion across the sector. Edesa Biotech 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 Edesa Biotech 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.
Edesa Biotech's Maximum Drawdown of
106.25 runs about
18.20 times its Jensen Alpha of
5.84 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Edesa Biotech.
Methodology, Assumptions & Data Sources
The current Jensen Alpha for Edesa Biotech is 5.84. The Jensen Alpha for Edesa Biotech is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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