Pure Storage Jensen Alpha
| PSTGDelisted Delisted Stock | | | USD 66.97 -1.03 -1.51% |
The Jensen Alpha profile for Pure Storage below includes current and historical values with sector peer benchmarks. Interpretation benefits from evaluating the reading alongside sector peer values and recent history. The pairing of
Pure Storage Volatility and
Pure Storage Price History broadens the analytical view on Pure Storage.
Current Jensen Alpha Value
The Jensen Alpha of
-0.12 for Pure Storage indicates slightly negative alpha — return marginally below the CAPM-predicted level. Pure Storage has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.12 | |
| ER[a] | = | Expected return on investing in Pure Storage |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Pure Storage and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, Pure Storage's Jensen Alpha of -0.1244 is below the 0.48 group average. The range runs from -0.0926 (Fidelity National Information) to 1.16 (Sandisk Corp). Pure Storage 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 Pure Storage 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.
Methodology, Assumptions & Data Sources
Pure Storage has a current Jensen Alpha reading of -0.12. The Jensen Alpha for Pure Storage is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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