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1. • • Alpha shows how well (or badly) a stock has performed in comparison to a benchmark index. Beta indicates how volatile a stock's price has been in comparison to the market as a whole. A high alpha is always good. A high beta may be preferred by an investor in growth stocks but shunned by investors who seek steady returns and lower risk.
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     Alpha vs. Beta: What's the Difference? - Investopedia

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   Is Alpha better than beta in investing?

   • All of this said, the downside of alpha and beta in investing is that both measure past performance, which might not hold going forward. Alpha requires a track record for greater accuracy, whereas beta tends to better assess short-term risk given that the volatility of an asset can change on a dime.

   What’s the difference between alpha and beta investing? - CNN

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   What is the difference between alpha and beta?

   • Alpha and beta are two different parts of an equation used to explain the performance of stocks and investment funds. Beta is a measure of volatility relative to a benchmark, such as the S&P 500. Alpha is the excess return on an investment after adjusting for market-related volatility and random fluctuations.

   Alpha and Beta for Beginners - Investopedia

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   What is alpha & beta?

   • Alpha and beta are two of the key measurements used to evaluate the performance of a stock, a fund, or an investment portfolio. 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 relative volatility of an investment.

   Alpha vs. Beta: What's the Difference? - Investopedia

   www.investopedia.com/ask/answers/102714/whats-difference-between-alpha-and-beta.asp

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   Is beta a good investment?

   • Beta might also be referred to as the return you can earn by passively owning the market. You can’t earn alpha by investing in a benchmark index fund such as an S&P 500 index fund, which is the definition of beta. While alpha and beta might sound like complex and intimidating financial terms, they’re really just ways to measure risk and return.

   Alpha Vs. Beta In Investing: What’s The Difference? | Bankrate

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3. www.investopedia.com › articles › investingAlpha and Beta for Beginners - Investopedia

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   Aug 4, 2021 · Alpha and beta are two different parts of an equation used to explain the performance of stocks and investment funds. Beta is a measure of volatility relative to a benchmark, such as the...

4. www.fool.com › how-to-invest › stocksAlpha vs. Beta: When to Use Which | The Motley Fool

   www.fool.com › how-to-invest › stocks

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   Apr 18, 2024 · Key Points. Understanding the alpha and beta concepts is important for maximizing portfolio performance. Higher alpha is always preferred to lower alpha, but there are scenarios where...

   • Author: Lee Samaha

5. www.bankrate.com › investing › alpha-vs-beta-stocksAlpha Vs. Beta In Investing: What’s The Difference? | Bankrate

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   Apr 18, 2024 · Alpha is a way to measure excess return, while beta is used to measure the volatility, or risk, of an asset. Beta might also be referred to as the return you can earn by passively owning the...

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6. Videos

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     Alpha vs. Beta: What's the Difference?

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     Understanding Alpha and Beta | Alpha vs Beta in Investing - TipRanks

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     Alpha: Its Meaning in Investing, With Examples

     Dec 31, 2008

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7. seekingalpha.com › article › 4516224-alpha-vs-betaAlpha vs. Beta In Investing: Definitions & Comparison

   seekingalpha.com › article › 4516224-alpha-vs-beta

   Aug 21, 2023 · Bottom Line. Alpha and beta are measures used by investors to classify the performance and risk of an investment security or portfolio. Beta is a measure of market risk, and alpha expresses...

   • Author: Kent Thune

8. time.com › article › alpha-vs-beta-investingAlpha vs. Beta in Investing: What’s the Difference? | TIME ...

   time.com › article › alpha-vs-beta-investing

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   Jan 5, 2024 · Alpha measures an investment's return (aka performance) relative to a benchmark, while beta measures an investment's volatility compared to the overall market. Together, these statistical...

9. www.cnn.com › money › alpha-vs-beta-investingWhat’s the difference between alpha and beta investing? - CNN

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   Jan 19, 2024 · The investment arm of BMO Bank put it best: “Alpha is often used to identify investment skill, while beta is used to measure the relative risk, or volatility, of an investment or portfolio.” You...