6 Meridian Total Risk Alpha
| SIXS ETF | | | USD 55.11 -0.09 -0.16% |
Total Risk Alpha measures the excess return of an asset after comparing its performance to a benchmark portfolio matched to the same total risk level. Unlike Jensen Alpha, which adjusts for systematic risk (beta) only, Total Risk Alpha accounts for total volatility. Below is 6 Meridian's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
6 Meridian registers a Total Risk Alpha of 0.0847, reflecting positive alpha — return above what market exposure alone would predict. 6 Meridian has generated modest excess return beyond what its systematic risk exposure explains.
Total Risk Alpha | = | RFR + (ER[b] - ER[a]) | x | STD[a] / STD[b] |
| = | 0.0847 | |
| ER[a] | = | Expected return on investing in 6 Meridian |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on 6 Meridian |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
The peer group averages 0.05 for Total Risk Alpha, with 6 Meridian at 0.0847 falling above that level. Readings span -0.0807 (iShares MSCI Philippines) to 0.1243 (Invesco SAMPP SmallCap). 6 Meridian has generated more excess return relative to its market exposure than the peer group average.
Total Risk Alpha Relative To Other Indicators
The chart below plots Total Risk Alpha against Maximum Drawdown for 6 Meridian and its peers. Each point represents one equity — position along the horizontal axis shows Total Risk 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.
Comparing Total Risk Alpha (
0.08 ) to Maximum Drawdown (
3.73 ) for 6 Meridian yields a
44.06 multiple. This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for 6 Meridian.
Methodology, Assumptions & Data Sources
The current Total Risk Alpha for 6 Meridian is 0.0847. The Total Risk Alpha for 6 Meridian applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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