Emerson Electric Jensen Alpha

EMR Stock  USD 132.59  0.41  0.31%   
Emerson Electric jensen-alpha technical analysis lookup allows you to check this and other technical indicators for Emerson Electric or any other equities. You can select from a set of available technical indicators by clicking on the link to the right. Please note, not all equities are covered by this module due to inconsistencies in global equity categorizations and data normalization technicques. Please check also Equity Screeners to view more equity screening tools
  
Emerson Electric has current Jensen Alpha of 0.189. Jensen alpha is a measure of the returns that are attributable to the managers' ability to select security and time the market. In other words, it is the returns remaining after deducting what would have been attributable to beta returns (which do not require skill) and the risk-freerate.

Jensen Alpha

 = 

ER[a] - RFR * (1-BETA)

-

BETA * ER[b])

 = 
0.189
ER[a] = Expected return on investing in Emerson Electric
ER[b] = Expected return on market index or selected benchmark
BETA = Beta coefficient between Emerson Electric and the market
RFR = Risk Free Rate of return. Typically T-Bill Rate

Emerson Electric Jensen Alpha Peers Comparison

Emerson Jensen Alpha Relative To Other Indicators

Emerson Electric is rated # 3 in jensen alpha category among its peers. It is currently under evaluation in maximum drawdown category among its peers reporting about  48.27  of Maximum Drawdown per Jensen Alpha. The ratio of Maximum Drawdown to Jensen Alpha for Emerson Electric is roughly  48.27 
Jensen alpha is the difference between the return of the portfolio, and what the portfolio should theoretically have earned. Any portfolio can be expected to earn the risk-free rate (RF), plus the market risk premium (which is given by [Beta x (Market Portfolio Return - Risk-Free Rate)]. Anything remaining over and above is alpha.
Compare Emerson Electric to Peers

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