Graham Holdings Jensen Alpha
| GHC Stock | | | USD 1,136 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 Graham Holdings's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Graham Holdings's Jensen Alpha of
-0.03 reflects slightly negative alpha — return marginally below the CAPM-predicted level. Graham Holdings has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.03 | |
| ER[a] | = | Expected return on investing in Graham Holdings |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Graham Holdings and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Relative to peers, Graham Holdings's Jensen Alpha is above the group average of -0.12. Peer readings range from -0.8853 (Bellring Brands LLC) to 0.7073 (Adecoagro SA), reflecting tight clustering across the sector. Graham Holdings 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 Graham Holdings 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 Graham Holdings to PeersMethodology, Assumptions & Data Sources
The current Jensen Alpha for Graham Holdings is -0.03. Graham Holdings' Jensen Alpha is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. Graham Holdings operates in the consumer discretionary sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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