Chevron Jensen Alpha

Chevron Corporation has current Jensen Alpha of (0.23). 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.
Chevron 
Jensen Alpha 
 = 
ER[a] - RFR * (1-BETA) 
BETA * ER[b]) 
 = 
(0.23)
ER[a] =   Expected return on investing in Chevron
ER[b] =   Expected return on market index or selected benchmark
BETA =   Beta coefficient between Chevron and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Jensen Alpha Comparison

Chevron Corporation is rated fourth in jensen alpha category among related companies. It is rated below average 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 Chevron to competition
Chevron Corporationration, through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. more
NameChevron Corporation
InstrumentUSA Stock
RegionNorth America
ExchangeNew York Stock Exchange
CIK Number00093410.0
ISINUS1667641005
CUSIP166764100
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
BBB+Good