Entravision Communications Jensen Alpha
| EVC Stock | | | USD 7.13 -0.03 -0.42% |
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 Entravision Communications's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Entravision Communications carries a Jensen Alpha of 1.82, consistent with strong positive alpha — return materially above what market exposure alone would predict. Entravision Communications has generated returns well beyond what its beta-adjusted market risk explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 1.82 | |
| ER[a] | = | Expected return on investing in Entravision Communications |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Entravision Communications and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
The peer group averages 0.43 for Jensen Alpha, with Entravision Communications at 1.82 falling above that level. Readings span -0.2366 (WiMi Hologram Cloud) to 1.3 (Starz Entertainment LLC). Entravision Communications 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 Entravision Communications 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.
With Jensen Alpha at
1.82 and Maximum Drawdown at
103.58 , Entravision Communications shows a
56.95 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Entravision Communications.
Methodology, Assumptions & Data Sources
Entravision Communications' Jensen Alpha currently stands at 1.82. The Jensen Alpha for Entravision Communications applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Entravision Communications operates in the communication services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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