Methanex Total Risk Alpha
| MEOH Stock | | | USD 62.37 -3.35 -5.10% |
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 Methanex's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
Methanex registers a Total Risk Alpha of 0.4498, reflecting positive alpha — return above what market exposure alone would predict. Methanex 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] |
| = | 0.4498 | |
| ER[a] | = | Expected return on investing in Methanex |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on Methanex |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
The peer group averages -0.01 for Total Risk Alpha, with Methanex at 0.4498 falling above that level. Readings span -0.331 (Americas Silver Corp) to 0.4351 (Hawkins). Methanex has generated more 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 Methanex 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.
At
0.45 for Total Risk Alpha and
19.65 for Maximum Drawdown, Methanex's cross-indicator ratio sits almost
43.69 . This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for Methanex.
Methodology, Assumptions & Data Sources
Methanex has a current Total Risk Alpha reading of 0.4498. Methanex's Total Risk Alpha is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. Methanex 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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