Processa Pharmaceuticals Total Risk Alpha
| PCSA Stock | | | USD 2.98 -0.01 -0.33% |
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 Processa Pharmaceuticals's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
With Total Risk Alpha at 0.1445, Processa Pharmaceuticals shows positive alpha — return above what market exposure alone would predict. Processa Pharmaceuticals 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] |
| = | 0.1445 | |
| ER[a] | = | Expected return on investing in Processa Pharmaceuticals |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on Processa Pharmaceuticals |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Relative to peers, Processa Pharmaceuticals's Total Risk Alpha is below the group average of 0.76. Peer readings range from -0.6528 (Moleculin Biotech) to 6.65 (Leap Therapeutics), reflecting wide dispersion across the sector. Processa Pharmaceuticals has generated less 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 Processa Pharmaceuticals 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.
Processa Pharmaceuticals's Maximum Drawdown of
37.67 runs about
260.69 times its Total Risk Alpha of
0.14 . This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for Processa Pharmaceuticals.
Methodology, Assumptions & Data Sources
Processa Pharmaceuticals' Total Risk Alpha currently stands at 0.1445. Processa Pharmaceuticals' 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. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Processa Pharmaceuticals operates in the health care 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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