Definition
Alpha
Return above what the market alone would explain.
Alpha is the portion of an investment’s return that can’t be explained by simply riding the market — in effect, the value added or lost relative to a benchmark after accounting for how much market risk was taken. Positive alpha suggests outperformance beyond what beta would predict; negative alpha the reverse. Market Lens estimates alpha against the S&P 500 in its portfolio analytics. Past alpha is a look backward, not a guarantee of future results.
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