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Alpha measures the excess return of a Stock above the return of its relevant Benchmark Index.

Alpha is one of two coefficients (the other is Beta) in the Capital Asset Pricing Model (CAPM). In Stock investing, the Greek Letter Alpha refers to the excess return on an individual Stock after adjusting for the price volatility which is related to the market and any random price movements. If the Stock’s Alpha is 2.5, this means the Stock has outperformed its relative Benchmark Index, which could be the overall Market or its Sector, by 2.5%.


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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.