Koppers Holdings Jensen Alpha
| KOP Stock | | | USD 41.24 0.08 0.19% |
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 Koppers Holdings's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
The current Jensen Alpha of 0.4833 places Koppers Holdings at positive alpha — return above what market exposure alone would predict. Koppers Holdings has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.4833 | |
| ER[a] | = | Expected return on investing in Koppers Holdings |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Koppers Holdings and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Koppers Holdings falls above the 0.18 peer average for Jensen Alpha. AdvanSix leads at 0.5584 while Integra Resources Corp registers the lowest at -0.3887. Koppers 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 Koppers 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.
Koppers Holdings's Jensen Alpha reads
0.48 while Maximum Drawdown reads
14.14 , a
29.27 ratio between the two. This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Koppers Holdings.
Methodology, Assumptions & Data Sources
The current Jensen Alpha for Koppers Holdings is 0.4833. The Jensen Alpha for Koppers Holdings 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. Koppers Holdings operates in the basic materials sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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