NetApp Total Risk Alpha
| NTAP Stock | | | USD 111.74 -2.40 -2.10% |
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 NetApp's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
NetApp registers a Total Risk Alpha of 0.2066, reflecting positive alpha — return above what market exposure alone would predict. NetApp 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] |
| = | 0.2066 | |
| ER[a] | = | Expected return on investing in NetApp |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on NetApp |
| 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 0.15 for Total Risk Alpha, with NetApp at 0.2066 falling above that level. Readings span -0.6723 (Check Point Software) to 1.2 (Flex). NetApp 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 NetApp 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.
NetApp's Total Risk Alpha reads
0.21 while Maximum Drawdown reads
12.54 , a
60.68 ratio between the two. This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for NetApp.
Methodology, Assumptions & Data Sources
NetApp has a current Total Risk Alpha reading of 0.2066. The Total Risk Alpha for NetApp is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. NetApp operates in the information technology sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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