Magnolia Oil Jensen Alpha
| MGY Stock | | | USD 27.80 -0.35 -1.24% |
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 Magnolia Oil's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Magnolia Oil registers a Jensen Alpha of 0.1648, reflecting positive alpha — return above what market exposure alone would predict. Magnolia Oil has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.1648 | |
| ER[a] | = | Expected return on investing in Magnolia Oil |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Magnolia Oil and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
The peer group averages 0.32 for Jensen Alpha, with Magnolia Oil at 0.1648 falling below that level. Readings span -0.0894 (CNX Resources Corp) to 0.808 (Valaris). Magnolia Oil 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 Magnolia Oil 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.
Magnolia Oil's Maximum Drawdown of
10.58 runs about
64.23 times its Jensen Alpha of
0.16 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Magnolia Oil.
Methodology, Assumptions & Data Sources
Magnolia Oil has a current Jensen Alpha reading of 0.1648. This Jensen Alpha reading for Magnolia Oil results from applying the indicator's calculation rules to price and volume data over the selected window. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Magnolia Oil operates in the energy 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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