PDD Holdings Jensen Alpha
| PDD Stock | | | USD 98.03 0.26 0.27% |
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 PDD Holdings's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At
-0.11, PDD Holdings's Jensen Alpha indicates slightly negative alpha — return marginally below the CAPM-predicted level. PDD Holdings 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 PDD Holdings |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between PDD Holdings and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
PDD Holdings's Jensen Alpha of -0.1084 falls below the -0.09 peer average. Values range from -0.4742 (Sea) to 0.1256 (JD Inc Adr), with tight clustering across the group. PDD Holdings 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 PDD Holdings 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 PDD Holdings to PeersMethodology, Assumptions & Data Sources
PDD Holdings has a current Jensen Alpha reading of -0.11. Jensen Alpha for PDD Holdings is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. PDD Holdings operates in the consumer discretionary 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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