Toro Jensen Alpha
| TTC Stock | | | USD 95.23 -1.03 -1.07% |
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 Toro's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
Toro has a Jensen Alpha of 0.1002, indicating positive alpha — return above what market exposure alone would predict. Toro has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.1002 | |
| ER[a] | = | Expected return on investing in Toro |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Toro and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Relative to peers, Toro's Jensen Alpha is below the group average of 0.17. Peer readings range from -0.1656 (ESAB Corp) to 0.4714 (IES Holdings), reflecting wide dispersion across the sector. Toro 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 Toro 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.
With Jensen Alpha at
0.10 and Maximum Drawdown at
8.60 , Toro shows a
85.78 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Jensen Alpha for Toro.
Methodology, Assumptions & Data Sources
Toro's Jensen Alpha currently stands at 0.1002. The Jensen Alpha for Toro is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Toro operates in the industrials 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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