Cryptocurrency Q&A Is alpha better than beta?

Is alpha better than beta?

Giulia Giulia Sun Oct 13 2024 | 6 answers 1223
I'm trying to figure out if alpha is superior to beta. I need to understand the comparison between the two in terms of their performance, stability, or any other relevant criteria. Is alpha better than beta?

6 answers

KatanaSwordsmanship KatanaSwordsmanship Mon Oct 14 2024
A beta greater than 1 suggests that the stock is more volatile than the market, while a beta less than 1 indicates lower volatility.

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Elena Elena Mon Oct 14 2024
Investors often use alpha and beta together to assess the risk-adjusted performance of a stock. A high alpha with a moderate beta can be attractive to investors seeking high returns with relatively low risk.

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MysticMoon MysticMoon Mon Oct 14 2024
Alpha is a financial metric used to evaluate the performance of a stock in relation to a benchmark index. It measures the excess return that a stock generates compared to the return of the broader market or a specific benchmark index.

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Daniela Daniela Mon Oct 14 2024
A positive alpha indicates that the stock has outperformed the benchmark, while a negative alpha suggests underperformance. The magnitude of the alpha value reflects the degree of outperformance or underperformance.

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CryptoWanderer CryptoWanderer Mon Oct 14 2024
BTCC, a top cryptocurrency exchange, offers a range of services to traders, including spot trading, futures trading, and cryptocurrency wallets. These services cater to the diverse needs of investors and traders looking to buy, sell, and store digital assets.

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