Quick Answer: What Does Seeking Alpha Mean In Finance?

What is alpha and beta in finance?

Alpha measures the amount that the investment has returned in comparison to the market index or other broad benchmark that it is compared against.

Beta measures the volatility of an investment.

It is an indication of its relative risk..

Is Alpha negative or positive?

Alpha may be positive or negative and is the result of active investing. Beta, on the other hand, can be earned through passive index investing. Alpha is commonly used to rank active mutual funds as well as all other types of investments.

What is Alpha risk?

Alpha risk is the risk in a statistical test that a null hypothesis will be rejected when it is actually true. … The null hypothesis in a statistical test usually states that there is no difference between the value being tested and a particular number, such as zero or one.

What does Seeking Alpha mean?

crowd-sourced content serviceSeeking Alpha is a crowd-sourced content service for financial markets.

Is positive alpha overpriced?

According to the Capital Asset Pricing Model (CAPM), a. a security with a positive alpha is considered overpriced. … a security with a zero alpha is considered to be a good buy.

What is a good alpha in investing?

Defining Alpha Alpha is also a measure of risk. An alpha of -15 means the investment was far too risky given the return. An alpha of zero suggests that an asset has earned a return commensurate with the risk. Alpha of greater than zero means an investment outperformed, after adjusting for volatility.

What is alpha in password?

The definition of alphanumeric is something that contains letters and numbers. A password that requires both letters and numbers is an example of an alphanumeric password.

Can anyone post on Seeking Alpha?

These include individual and institutional investors, fund managers, college students, retirees, analysts and basically anyone who wants to share investment insights and ideas with our community. You too can become a contributor today! For any assistance or questions, please contact contributors@seekingalpha.com.

Does Seeking Alpha pay contributors?

We pay contributors who publish articles that are exclusive to Seeking Alpha. The base payment is $10/CPM (1,000 page-views). … Contributors were happy, but said the focus on page-views led them to publish analysis on very popular stocks and topics.

Is Seeking Alpha credible?

It’s as reliable as other peoples’ opinions: sometimes very, sometimes not at all, sometimes partially. Anyone can write an article for Seeking Alpha, and even though there is an editorial process you have to go through, that doesn’t mean everything in there will be high quality.

How is Alpha calculated?

Alpha = R – Rf – beta (Rm-Rf) R represents the portfolio return. Rf represents the risk-free rate of return. Beta represents the systematic risk of a portfolio. Rm represents the market return, per a benchmark.

What is a good alpha value?

A positive alpha of 1.0 means the fund or stock has outperformed its benchmark index by 1 percent. A similar negative alpha of 1.0 would indicate an underperformance of 1 percent. A beta of less than 1 means that the security will be less volatile than the market.

What does Alpha mean in English?

In English, the noun “alpha” is used as a synonym for “beginning”, or “first” (in a series), reflecting its Greek roots.

What is Alpha Wolf?

A wolf pack is really just another name for a family of wolves. … The pack leaders are the alpha male and female. These two animals are dominant over all the other wolves in the pack. The alpha male and female are the only wolves that breed and produce pups in the pack, and they also get to eat first at kills.

Who is behind Seeking Alpha?

David JacksonDavid Jackson is the founder of Seeking Alpha.