CVS Health Jensen Alpha

CVS Health Corporation has current Jensen Alpha of (0.16). 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.
CVS Health 
Jensen Alpha 
 = 
ER[a] - RFR * (1-BETA) 
BETA * ER[b]) 
 = 
(0.16)
ER[a] =   Expected return on investing in CVS Health
ER[b] =   Expected return on market index or selected benchmark
BETA =   Beta coefficient between CVS Health and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Jensen Alpha Comparison

CVS Health Corporation is rated below average in jensen alpha category among related companies. It is currently under evaluation 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 CVS Health to competition
CVS Health Corporationration, together with its subsidiaries, offer integrated pharmacy health care services. more
NameCVS Health Corporation
InstrumentUSA Stock
RegionNorth America
ExchangeNew York Stock Exchange
CIK Number00064803.0
ISINUS1266501006
CUSIP126650100
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
BBB+Good
CurrencyUSD - US Dollar