Alcoa Jensen Alpha

    Alcoa Inc has current Jensen Alpha of (0.36). Jensen alpha is a measure of the returns that are attributable to the managers ability to select security and time the market. In other words it is the returns remaining after deducting what would have been attributable to beta returns (which do not require skill) and the risk free rate.
    Alcoa 
    Jensen Alpha 
     = 
    ER[a] - RFR * (1-BETA) 
    BETA * ER[b]) 
     = 
    (0.36)
    ER[a] =   Expected return on investing in Alcoa
    ER[b] =   Expected return on market index or selected benchmark
    BETA =   Beta coefficient between Alcoa and the market
    RFR =   Risk Free Rate of return. Typically T-Bill Rate

    Jensen Alpha Comparison

    Alcoa Inc is rated third in jensen alpha category among related companies. It is rated second in maximum drawdown category among related companies .
    Jensen alpha is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk free rate (RF), plus the market risk premium (which is given by [Beta x (Market Portfolio Return - Risk Free Rate)]. Anything remaining over and above is alpha.
    Compare Alcoa to competition
    Alcoa Corporationration engages in mining and production of bauxite, alumina, and aluminum products. more
    NameAlcoa Inc
    InstrumentUSA Stock
    RegionNorth America
    ExchangeNew York Stock Exchange
    CIK Number01675149.0
    ISINUS0138171014
    CUSIPNone
    New SymbolARNC
    Analyst Consensus
    Piotroski F Score
    Macroaxis Advice
    Bond Rating