Weighted alpha is a measure of a stock's performance that takes into account both the price movements of the stock and the volume of shares traded. The weighted alpha is calculated by taking the product of the stock's alpha and the stock's weight.
The alpha is a measure of the stock's price performance. The alpha is calculated by taking the difference between the stock's return and the return of the benchmark index, and then dividing by the stock's standard deviation.
The weight is a measure of the importance of the stock in the portfolio. The weight is calculated by taking the stock's market capitalization and dividing it by the total market capitalization of the portfolio. How does Barchart TrendSpotter work? Barchart's TrendSpotter is an automated technical analysis system that uses pattern recognition to identify market trends. The system looks for specific price and volume patterns that have been associated with past market reversals. When these patterns are identified, the system issues a buy or sell signal.
The TrendSpotter system is based on a set of rules that were developed by Barchart's team of analysts. These rules are constantly being tweaked and updated as the market changes. The system is designed to be objective and unbiased, and to take emotion out of the equation.
The TrendSpotter system is available exclusively to Barchart subscribers.
What is weighted alpha in Barchart?
Weighted alpha is a measure of a stock's performance that takes into account the capitalization of the company. The higher the weighted alpha, the more the stock has risen or fallen over a one-year period. Barchart calculates weighted alpha as:
(((Close - PrevClose) / PrevClose) + 2*(Close - Open)) / ((High - Low) + (Close - Open)/2)
where:
Close = the stock's current price
PrevClose = the stock's price one year ago
Open = the stock's opening price today
High = the stock's highest price today
Low = the stock's lowest price today
The weighted alpha is useful for seeing how a stock has performed over a longer period of time, rather than just looking at the stock's current price. How is alpha calculated? Alpha is a measure of the risk-adjusted performance of an investment. It is calculated by subtracting the risk-free rate of return from the portfolio's return, and then dividing by the portfolio's volatility. What does a low alpha mean in a stock? A low alpha means that a stock is not performing as well as its benchmark. For example, if a stock has an alpha of -0.5, it means that it is underperforming the benchmark by 0.5%.
What is a high alpha?
A high alpha means that the investment's excess return is higher than what would be expected given the level of risk as measured by beta. A high alpha indicates that the investment is doing better than what would be expected given its level of risk.