Alpha

Alpha,

Definition of Alpha:

  1. US: Measure of price volatility of a stock (shares). Alpha methodology tries to separate the price movements of a particular stock from those of the stockmarket, and focuses on fundamentals such as the growth rate of stocks earnings per share (EPS). A high alpha score means the stock is expected to remain stable no matter how the stockmarket behaves. See also beta.

  2. The first letter of the Greek alphabet (Α, α), transliterated as ‘a.’.

  3. "Alpha" (the Greek letter α) is a term used in investing to describe a strategy's ability to beat the market, or it's "edge." Alpha is thus also often referred to as “excess return” or “abnormal rate of return,” which refers to the idea that markets are efficient, and so there is no way to systematically earn returns that exceed the broad market as a whole. Alpha is often used in conjunction with beta (the Greek letter β) , which measures the broad market's overall volatility or risk, known as systematic market risk.

  4. A plane angle.

  5. UK: One of the four classifications (with beta, gamma, and delta) of the largest and most traded stocks on London Stock Exchange (LSE) under the normal market size classification system.

  6. A code word representing the letter A, used in radio communication.

  7. Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over some period. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole. The excess return of an investment relative to the return of a benchmark index is the investment’s alpha. 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.

  8. Right ascension.

  9. Angular acceleration.

Synonyms of Alpha

A, Beginning, Blast-off, Breaking-in, Commencement, Creation, Cutting edge, Dawn, Dawning, Edge, Establishment, First, First blush, First glance, First impression, First inning, First lap, First move, First round, First sight, First stage, First step, Flying start, Foundation, Fresh start, Gambit, Genesis, Initial, Initiative, Institution, Jump-off, Kick-off, Le premier pas, Leading edge, New departure, Oncoming, Onset, Opening, Opening move, Origin, Origination, Outbreak, Outset, Outstart, Prime, Primitiveness, Primitivity, Running start, Send-off, Setout, Setting in motion, Setting-up, Square one, Start, Start-off, Starting point, Take-off, Warming-up

How to use Alpha in a sentence?

  1. We soon learned that the alpha bravo code is a type of phonetic alphabet used by NATO.
  2. He named them using the first two letters of the Greek alphabet, alpha and beta.

Meaning of Alpha & Alpha Definition