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Market MeasuresAlpha and Beta | Jan 31, 2020
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    Market MeasuresAlpha and BetaJan 31, 2020

    We often discuss beta, a measure of systematic risk for a portfolio or asset, but we rarely discuss alpha.

    Alpha is another important metric that estimates the percent excess return on an investment relative to some benchmark (the S&P in our case).

    Alpha is a great way to estimate how well a strategy is outperforming the market - today we investigate how well a portfolio of actively managed 16 Delta SPY strangles performs relative to major tech stocks using alpha and beta.

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