ReTo Eco Jensen Alpha
| RETO Stock | | | USD 0.60 0.01 2.22% |
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 ReTo Eco's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
The current Jensen Alpha of 0.1515 places ReTo Eco at positive alpha — return above what market exposure alone would predict. ReTo Eco has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.1515 | |
| ER[a] | = | Expected return on investing in ReTo Eco |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between ReTo Eco and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
ReTo Eco falls below the 5.05 peer average for Jensen Alpha. Crown Electrokinetics Corp leads at 41.12 while Origin Materials registers the lowest at -1.5167. ReTo Eco 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 ReTo Eco 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.
ReTo Eco shows nearly
452.71 of Maximum Drawdown per unit of Jensen Alpha (
0.15 versus
68.59 ). This indicates Maximum Drawdown substantially exceeds Jensen Alpha for ReTo Eco.
Methodology, Assumptions & Data Sources
ReTo Eco has a current Jensen Alpha reading of 0.1515. Jensen Alpha for ReTo Eco is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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