XORTX Therapeutics Jensen Alpha
| XRTX Stock | | | USD 3.03 0.26 9.39% |
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 XORTX Therapeutics's current Jensen Alpha with peer comparisons and related risk metrics.
Current Jensen Alpha Value
The current Jensen Alpha of 0.2181 places XORTX Therapeutics at positive alpha — return above what market exposure alone would predict. XORTX Therapeutics has generated modest excess return beyond what its systematic risk exposure explains.
Jensen Alpha | = | ER[a] - RFR * (1-BETA) | - | BETA * ER[b]) |
| = | 0.2181 | |
| ER[a] | = | Expected return on investing in XORTX Therapeutics |
| ER[b] | = | Expected return on market index or selected benchmark |
| BETA | = | Beta coefficient between XORTX Therapeutics and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Jensen Alpha Peers Comparison
The peer group averages 1.22 for Jensen Alpha, with XORTX Therapeutics at 0.2181 falling below that level. Readings span -0.9361 (GT Biopharma) to 6.41 (NKGen Biotech Common). XORTX Therapeutics 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 XORTX Therapeutics 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.
XORTX Therapeutics's Maximum Drawdown of
49.20 runs about
225.60 times its Jensen Alpha of
0.22 . This indicates Maximum Drawdown substantially exceeds Jensen Alpha for XORTX Therapeutics.
Methodology, Assumptions & Data Sources
The current Jensen Alpha for XORTX Therapeutics is 0.2181. Jensen Alpha for XORTX Therapeutics 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. XORTX Therapeutics operates in the health care sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. 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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