Orchid Island Jensen Alpha
| ORC Stock | | | USD 7.15 0.10 1.42% |
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 Orchid Island's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
The Jensen Alpha of
-0.14 for Orchid Island indicates slightly negative alpha — return marginally below the CAPM-predicted level. Orchid Island has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.14 | |
| ER[a] | = | Expected return on investing in Orchid Island |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Orchid Island and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, Orchid Island's Jensen Alpha of -0.1424 is below the -0.12 group average. The range runs from -0.3016 (Oxford Lane Capital) to 0.0 (). Orchid Island 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 Orchid Island 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 Orchid Island to PeersMethodology, Assumptions & Data Sources
Orchid Island's Jensen Alpha currently stands at -0.14. The Jensen Alpha for Orchid Island applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Orchid Island operates in the real estate 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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