Cabana Target Jensen Alpha
| TDSB ETF | | | USD 24.82 0.10 0.40% |
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 Cabana Target's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
A Jensen Alpha of 0.0345 for Cabana Target signals positive alpha — return above what market exposure alone would predict. Cabana Target has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.0345 | |
| ER[a] | = | Expected return on investing in Cabana Target |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Cabana Target and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Cabana Target's Jensen Alpha of 0.0345 falls below the 0.06 peer average. Values range from 0.0034 (6 Meridian Quality) to 0.1121 (Siren DIVCON Leaders), with wide dispersion across the group. Cabana Target 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 Cabana Target 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.
Cabana Target's Maximum Drawdown of
2.35 runs about
68.08 times its Jensen Alpha of
0.03 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Cabana Target.
Methodology, Assumptions & Data Sources
Cabana Target has a current Jensen Alpha reading of 0.0345. Jensen Alpha for Cabana Target is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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