5 thoughts on “What does α and β in investment mean?”
Tony
Investment α and β are the sum of additional yields for securities investment. α has nothing to do with the entire market, and β is the average yield of the entire market multiplied by a coefficient. The value of Alpha (α, Alpha) and Beta (BETA) is different. Simply put, Alpha is rare, and Beta is easy. As long as the ratio of cash and stock index funds (or stock index futures) in the investment portfolio can easily change the Beta coefficient, that is, the income from the entire market part in the investment portfolio. The expansion information: Tex fund (INDEX FUND) and trading open index funds (ETF, Exchange Traded Fund) are tools for buying pure Beta. Because there are only Beta, they generally only charge very low capital -based management fees (Fee). There is no Alpha, so they will not charge a profit -based sharing fee. Our common public funds, Mutual Fund.
The difference between Alpha coefficient (α) is the actual income of the fund and the expected income calculated based on the β coefficient. The calculation method is as follows: The extra yield is the fund's income minus risk -free investment income (in China for a one -year bank regular deposit return); Reflects the income obtained by the fund's overall changes; the difference between excess revenue and expected income is the α coefficient. Peta coefficient (β) to measure the overall volatility of the fund's revenue relative to the performance evaluation benchmark income is a relative indicator. The higher the beta, the greater the volatility of the fund's benchmark for the performance evaluation. Big β is greater than 1, then the volatility of the fund is greater than the volatility of the performance evaluation benchmark. vice versa. If β is 1, the market rises 10 %, the fund rises 10 %; the market declines 10 %, and the fund declines by 10 % accordingly. If β is 1.1 and the market rises by 10%, the fund rises 11%; when the market declines 10%, the fund will decline 11%. If the β is 0.9 and the market rises 10%, the fund rises 9%; when the market declines 10%, the fund will decline 9%. Extended information: Investment refers to the economic behavior of specific economic subjects to obtain income or value appreciation in the future, and to put enough amounts of funds or physical currency equivalent to a certain field in a certain period of time. It can be divided into physical investment, capital investment and securities investment. The former is invested in enterprises with currency and obtained certain profits through production and operation activities. The latter is to purchase stocks and corporate bonds issued by currency purchases to indirectly participate in the profit distribution of enterprises. Investment is a form of incubation of innovation and entrepreneurship projects, and it is an economic activity that promotes capital to develop capital in the industrialization complex of the project. Reference materials: Baidu Encyclopedia-Investment
β coefficients have several meanings in the fund. It is a simple understanding. It is an index that measures the system risk level of securities. Systemic risks are generally inevitable, mainly including policy risks, economic cyclical fluctuations, interest rate risks, purchasing power risks, exchange rate risks, etc. This risk cannot be eliminated by decentralized investment, so it is also called irreplaceable risks.
This corresponding to system risks is non -system risk, that is, α, non -systemic risk refers to the risk of impact on a certain industry or individual securities. It is usually caused by a special factors (for example, for example The company's workers' strikes, failed to develop new products, etc.), there is no comprehensive connection with the price of the entire securities market, also known as decentralized risks.
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Investment α and β are the sum of additional yields for securities investment. α has nothing to do with the entire market, and β is the average yield of the entire market multiplied by a coefficient.
The value of Alpha (α, Alpha) and Beta (BETA) is different. Simply put, Alpha is rare, and Beta is easy. As long as the ratio of cash and stock index funds (or stock index futures) in the investment portfolio can easily change the Beta coefficient, that is, the income from the entire market part in the investment portfolio.
The expansion information:
Tex fund (INDEX FUND) and trading open index funds (ETF, Exchange Traded Fund) are tools for buying pure Beta. Because there are only Beta, they generally only charge very low capital -based management fees (Fee). There is no Alpha, so they will not charge a profit -based sharing fee. Our common public funds, Mutual Fund.
The reference materials: Alpha coefficient_ 百度 百
The difference between Alpha coefficient (α) is the actual income of the fund and the expected income calculated based on the β coefficient. The calculation method is as follows:
The extra yield is the fund's income minus risk -free investment income (in China for a one -year bank regular deposit return); Reflects the income obtained by the fund's overall changes; the difference between excess revenue and expected income is the α coefficient.
Peta coefficient (β) to measure the overall volatility of the fund's revenue relative to the performance evaluation benchmark income is a relative indicator. The higher the beta, the greater the volatility of the fund's benchmark for the performance evaluation. Big β is greater than 1, then the volatility of the fund is greater than the volatility of the performance evaluation benchmark. vice versa.
If β is 1, the market rises 10 %, the fund rises 10 %; the market declines 10 %, and the fund declines by 10 % accordingly. If β is 1.1 and the market rises by 10%, the fund rises 11%; when the market declines 10%, the fund will decline 11%. If the β is 0.9 and the market rises 10%, the fund rises 9%; when the market declines 10%, the fund will decline 9%.
Extended information: Investment refers to the economic behavior of specific economic subjects to obtain income or value appreciation in the future, and to put enough amounts of funds or physical currency equivalent to a certain field in a certain period of time. It can be divided into physical investment, capital investment and securities investment. The former is invested in enterprises with currency and obtained certain profits through production and operation activities. The latter is to purchase stocks and corporate bonds issued by currency purchases to indirectly participate in the profit distribution of enterprises.
Investment is a form of incubation of innovation and entrepreneurship projects, and it is an economic activity that promotes capital to develop capital in the industrialization complex of the project.
Reference materials: Baidu Encyclopedia-Investment
Both are applied to the fund.
β coefficients have several meanings in the fund. It is a simple understanding. It is an index that measures the system risk level of securities. Systemic risks are generally inevitable, mainly including policy risks, economic cyclical fluctuations, interest rate risks, purchasing power risks, exchange rate risks, etc. This risk cannot be eliminated by decentralized investment, so it is also called irreplaceable risks.
This corresponding to system risks is non -system risk, that is, α, non -systemic risk refers to the risk of impact on a certain industry or individual securities. It is usually caused by a special factors (for example, for example The company's workers' strikes, failed to develop new products, etc.), there is no comprehensive connection with the price of the entire securities market, also known as decentralized risks.
Investing in Mid -Corner A and Kok Batta, the code, the code
n00:00 / 00: 5770% shortcut keys to describe space: Play / suspend ESC: exit full screen ↑: increase volume 10% ↓: reduced volume decrease by 10% →: single fast forward 5 seconds ←: single fast retreat 5 seconds Press hold up and hold it up. Here you can drag no longer appear in the player settings to reopen the small window shortcut key description