Fidelity Emerging Total Risk Alpha
| FDEM ETF | | | USD 36.23 -0.34 -0.93% |
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 Fidelity Emerging's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
Fidelity Emerging's Total Risk Alpha of 0.1507 reflects positive alpha — return above what market exposure alone would predict. Fidelity Emerging 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] |
| = | 0.1507 | |
| ER[a] | = | Expected return on investing in Fidelity Emerging |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on Fidelity Emerging |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Fidelity Emerging falls above the 0.05 peer average for Total Risk Alpha. Columbia Emerging Markets leads at 0.2382 while First Trust Nasdaq registers the lowest at -0.0572. Fidelity Emerging 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 Fidelity Emerging 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.
Fidelity Emerging shows nearly
42.03 of Maximum Drawdown per unit of Total Risk Alpha (
0.15 versus
6.33 ). This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for Fidelity Emerging.
Methodology, Assumptions & Data Sources
Fidelity Emerging has a current Total Risk Alpha reading of 0.1507. The Total Risk Alpha for Fidelity Emerging is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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