Orthofix Medical Jensen Alpha
| OFIX Stock | | | USD 11.65 -0.42 -3.48% |
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 Orthofix Medical's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Orthofix Medical's Jensen Alpha of
-0.11 reflects slightly negative alpha — return marginally below the CAPM-predicted level. Orthofix Medical has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.11 | |
| ER[a] | = | Expected return on investing in Orthofix Medical |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Orthofix Medical and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Relative to peers, Orthofix Medical's Jensen Alpha is below the group average of 0.15. Peer readings range from -0.4184 (Standard Biotools) to 1.19 (Avanos Medical), reflecting wide dispersion across the sector. Orthofix Medical 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 Orthofix Medical 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.
Compare Orthofix Medical to PeersMethodology, Assumptions & Data Sources
Orthofix Medical has a current Jensen Alpha reading of -0.11. The Jensen Alpha for Orthofix Medical 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. Orthofix Medical operates in the health care 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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