Ionis Pharmaceuticals Jensen Alpha
| IONS Stock | | | USD 76.02 -0.83 -1.08% |
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 Ionis Pharmaceuticals's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At
-0.16, Ionis Pharmaceuticals exhibits slightly negative alpha — return marginally below the CAPM-predicted level in Jensen Alpha. Ionis Pharmaceuticals has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.16 | |
| ER[a] | = | Expected return on investing in Ionis Pharmaceuticals |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Ionis Pharmaceuticals and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, Ionis Pharmaceuticals's Jensen Alpha of -0.159 is below the 0.17 group average. The range runs from -0.2673 (Guardant Health) to 0.7226 (Revolution Medicines). Ionis Pharmaceuticals 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 Ionis Pharmaceuticals 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 Ionis Pharmaceuticals to PeersMethodology, Assumptions & Data Sources
The current Jensen Alpha for Ionis Pharmaceuticals is -0.16. The Jensen Alpha for Ionis Pharmaceuticals is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Ionis Pharmaceuticals operates in the health care sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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