WisdomTree Trust Jensen Alpha
| WTAI ETF | | | USD 41.46 0.00 0.00% |
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 WisdomTree Trust's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
With Jensen Alpha at 0.5375, WisdomTree Trust shows positive alpha — return above what market exposure alone would predict. WisdomTree Trust has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.5375 | |
| ER[a] | = | Expected return on investing in WisdomTree Trust |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between WisdomTree Trust and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
WisdomTree Trust falls above the 0.07 peer average for Jensen Alpha. Adaptive Alpha Opportunities leads at 0.2287 while Alpskotak India Growth registers the lowest at -0.1407. WisdomTree Trust has generated more 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 WisdomTree Trust 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.
At
0.54 for Jensen Alpha and
8.89 for Maximum Drawdown, WisdomTree Trust's cross-indicator ratio sits almost
16.54 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for WisdomTree Trust.
Methodology, Assumptions & Data Sources
WisdomTree Trust has a current Jensen Alpha reading of 0.5375. Jensen Alpha for WisdomTree Trust is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. The output reflects the selected calculation window — changing the horizon will produce different readings. This ETF metric is provided for analytical reference.
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