Trade Desk Jensen Alpha
| TTD Stock | | | USD 23.49 -0.52 -2.17% |
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 Trade Desk's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
At
-0.16, Trade Desk's Jensen Alpha indicates slightly negative alpha — return marginally below the CAPM-predicted level. Trade Desk has slightly underperformed relative to what its market beta would imply.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | -0.16 | |
| ER[a] | = | Expected return on investing in Trade Desk |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between Trade Desk and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
Trade Desk's Jensen Alpha of -0.1573 falls below the 0.27 peer average. Values range from -0.1751 (Grab Holdings) to 1.2 (Flex), with wide dispersion across the group. Trade Desk 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 Trade Desk 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 Trade Desk to PeersMethodology, Assumptions & Data Sources
The current Jensen Alpha for Trade Desk is -0.16. The Jensen Alpha for Trade Desk 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. Trade Desk operates in the information technology 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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