TPG Telecom Total Risk Alpha
| TPG Stock | | | 4.22 -0.06 -1.40% |
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 TPG Telecom's current Total Risk Alpha with peer comparisons and related risk metrics.
Current Total Risk Alpha Value
A Total Risk Alpha of 0.1642 for TPG Telecom signals positive alpha — return above what market exposure alone would predict. TPG Telecom 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] |
| = | 0.1642 | |
| ER[a] | = | Expected return on investing in TPG Telecom |
| ER[b] | = | Expected return on market index or selected benchmark |
| STD[a] | = | Standard Deviation of returns on TPG Telecom |
| STD[b] | = | Standard Deviation of selected market or benchmark |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Total Risk Alpha Peers Comparison
Relative to peers, TPG Telecom's Total Risk Alpha is above the group average of -0.04. Peer readings range from -1.467 (Imugene) to 0.8257 (Energy Resources of), reflecting tight clustering across the sector. TPG Telecom 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 TPG Telecom 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 (
0.16 ) to Maximum Drawdown (
6.88 ) for TPG Telecom yields a
41.92 multiple. This indicates Maximum Drawdown substantially exceeds Total Risk Alpha for TPG Telecom.
Methodology, Assumptions & Data Sources
TPG Telecom's Total Risk Alpha currently stands at 0.1642. Total Risk Alpha for TPG Telecom is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. TPG Telecom operates in the communication services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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