RMB Mendon Jensen Alpha
| RMBKX Fund | | | USD 56.80 -0.21 -0.37% |
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 RMB Mendon's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
RMB Mendon carries a Jensen Alpha of
-0.02, consistent with slightly negative alpha — return marginally below the CAPM-predicted level. RMB Mendon has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.02 | |
| ER[a] | = | Expected return on investing in RMB Mendon |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between RMB Mendon and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Among sector peers, RMB Mendon's Jensen Alpha of -0.0159 is below the 0.06 group average. The range runs from -0.1492 (Virtus Kar Small Cap) to 0.2436 (Red Oak Technology). RMB Mendon 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 Rmb Mendon 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 RMB Mendon to PeersMethodology, Assumptions & Data Sources
RMB Mendon's Jensen Alpha currently stands at -0.02. RMB Mendon's Jensen Alpha is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. RMB Mendon operates in the financial sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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