Mercury General Jensen Alpha
| MCY Stock | | | USD 100.11 0.44 0.44% |
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 Mercury General's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At 0.1426, Mercury General exhibits positive alpha — return above what market exposure alone would predict in Jensen Alpha. Mercury General has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.1426 | |
| ER[a] | = | Expected return on investing in Mercury General |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Mercury General and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, Mercury General's Jensen Alpha of 0.1426 is above the -0.19 group average. The range runs from -1.1182 (Aspen Insurance Holdings) to 0.0628 (FG Annuities Life). Mercury General 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 Mercury General 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.
Mercury General's Maximum Drawdown of
12.12 runs about
85.01 times its Jensen Alpha of
0.14 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Mercury General.
Methodology, Assumptions & Data Sources
Mercury General has a current Jensen Alpha reading of 0.1426. This Jensen Alpha reading for Mercury General results from applying the indicator's calculation rules to price and volume data over the selected window. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Mercury General operates in the financial services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. 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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