Hess Midstream Total Risk Alpha
| HESM Stock | | | USD 38.23 0.79 2.11% |
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 Hess Midstream's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
At 0.1284, Hess Midstream exhibits positive alpha — return above what market exposure alone would predict in Total Risk Alpha. Hess Midstream 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] |
| = | 0.1284 | |
| ER[a] | = | Expected return on investing in Hess Midstream |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on Hess Midstream |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Hess Midstream's Total Risk Alpha of 0.1284 falls below the 0.27 peer average. Values range from -0.066 (National Fuel Gas) to 0.6063 (APA Corporation), with wide dispersion across the group. Hess Midstream has generated less 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 Hess Midstream 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.
Hess Midstream shows nearly
42.70 of Maximum Drawdown per unit of Total Risk Alpha (
0.13 versus
5.48 ). This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for Hess Midstream.
Methodology, Assumptions & Data Sources
Hess Midstream has a current Total Risk Alpha reading of 0.1284. Total Risk Alpha for Hess Midstream is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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