| Weighted
Alpha |
 |
Alpha
is a measure of how much a stock has risen or fallen over a certain
period, usually one year. By weighting it we put more weight to recent
activity and less weight on earlier movement. This technique is popular
by technical analysts.
|
 |
If
the stock was up over the period then it will have a positive weighted
alpha. An unchanged stock price has a small weighted alpha and a stock
whose price has fallen over the period will have a negative weighted
alpha. |
|
|
|
Dictionary
