Sleep Number Total Risk Alpha
| SNBR Stock | | | USD 3.03 0.03 1.00% |
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 Sleep Number's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
Sleep Number has a Total Risk Alpha of
-1.36, indicating negative alpha — return below what market exposure would predict. The magnitude indicates Sleep Number has materially underperformed its risk-adjusted expected return.
Total Risk Alpha | = | RFR + (ER[b] - ER[a]) | x | STD[a] / STD[b] |
| = | -1.36 | |
| ER[a] | = | Expected return on investing in Sleep Number |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on Sleep Number |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Sleep Number falls below the -0.3 peer average for Total Risk Alpha. Fossil Group leads at 0.3554 while IRobot registers the lowest at -2.2803. Sleep Number has generated less 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 Sleep Number 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.
Compare Sleep Number to PeersMethodology, Assumptions & Data Sources
Sleep Number has a current Total Risk Alpha reading of -1.36. The Total Risk Alpha for Sleep Number is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. Sleep Number operates in the consumer discretionary sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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