Gildan Activewear Jensen Alpha
| GIL Stock | | | USD 59.26 -0.14 -0.24% |
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 Gildan Activewear's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Gildan Activewear's Jensen Alpha of
-0.20 reflects slightly negative alpha — return marginally below the CAPM-predicted level. Gildan Activewear has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.20 | |
| ER[a] | = | Expected return on investing in Gildan Activewear |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Gildan Activewear and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Relative to peers, Gildan Activewear's Jensen Alpha is below the group average of -0.05. Peer readings range from -0.3036 (The Gap) to 0.2266 (Five Below), reflecting tight clustering across the sector. Gildan Activewear 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 Gildan Activewear 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 Gildan Activewear to PeersMethodology, Assumptions & Data Sources
Gildan Activewear has a current Jensen Alpha reading of -0.20. The Jensen Alpha for Gildan Activewear applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Gildan Activewear 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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