SLM Corp Jensen Alpha
| SLM Stock | | | USD 22.66 0.13 0.58% |
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 SLM Corp's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At
-0.25, SLM Corp's Jensen Alpha indicates slightly negative alpha — return marginally below the CAPM-predicted level. SLM Corp has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.25 | |
| ER[a] | = | Expected return on investing in SLM Corp |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between SLM Corp and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
SLM Corp's Jensen Alpha of -0.246 falls below the 0.02 peer average. Values range from -0.1426 (OneMain Holdings) to 0.171 (Blue Owl Capital), with wide dispersion across the group. SLM Corp 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 SLM Corp 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 SLM Corp to PeersMethodology, Assumptions & Data Sources
SLM Corp has a current Jensen Alpha reading of -0.25. This Jensen Alpha reading for SLM Corp results from applying the indicator's calculation rules to price and volume data over the selected window. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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