Regal Beloit Jensen Alpha
| RRX Stock | | | USD 231.37 9.35 4.21% |
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 Regal Beloit's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Regal Beloit carries a Jensen Alpha of 0.2546, consistent with positive alpha — return above what market exposure alone would predict. Regal Beloit has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.2546 | |
| ER[a] | = | Expected return on investing in Regal Beloit |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Regal Beloit and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
The peer group averages -0.04 for Jensen Alpha, with Regal Beloit at 0.2546 falling above that level. Readings span -0.3153 (Ingersoll Rand) to 0.446 (Gorman Rupp). Regal Beloit has generated more 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 Regal Beloit 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.
Regal Beloit's Maximum Drawdown of
17.74 runs about
69.67 times its Jensen Alpha of
0.25 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Regal Beloit.
Methodology, Assumptions & Data Sources
Regal Beloit's Jensen Alpha currently stands at 0.2546. This Jensen Alpha reading for Regal Beloit results from applying the indicator's calculation rules to price and volume data over the selected window. 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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