Alpha
A measure of an investment's performance relative to a benchmark index. Positive alpha indicates outperformance on a risk-adjusted basis.
Key financial terms and concepts used throughout CausifyMarket reports, explained in plain language for investors at every experience level.
A measure of an investment's performance relative to a benchmark index. Positive alpha indicates outperformance on a risk-adjusted basis.
A prolonged period of declining asset prices, typically defined as a drop of 20% or more from recent highs.
A measure of a security's volatility relative to the overall market. A beta above 1 indicates higher volatility.
A sustained period of rising asset prices, characterized by investor optimism and strong economic fundamentals.
An analytical approach that goes beyond correlation to identify the underlying causes and effects of market movements.
A statistical measure describing the degree to which two securities move in relation to each other, ranging from -1 to +1.
A risk management strategy spreading investments across different asset classes, sectors, or geographies.
The peak-to-trough decline in the value of an investment before a new peak is reached.
A company's net profit divided by the number of outstanding shares.
An investment fund that trades on stock exchanges, typically tracking an index or basket of assets.
The interest rate at which U.S. banks lend reserves to each other overnight, set by the Federal Reserve.
An investment made to reduce the risk of adverse price movements.
The rate at which the general level of prices for goods and services rises.
The ease with which an asset can be bought or sold without significantly affecting its price.
The total market value of a company's outstanding shares.
A technical indicator smoothing price data by averaging over a specific number of periods.
A valuation ratio dividing share price by earnings per share.
A monetary policy tool whereby central banks purchase government bonds to stimulate the economy.
A measure of investment return relative to the amount of risk taken.
An investment strategy moving capital between sectors based on the current phase of the economic cycle.
Use of NLP and machine learning to assess the emotional tone of financial news.
A measure of risk-adjusted performance: return minus risk-free rate, divided by standard deviation.
The difference between two prices, rates, or yields.
A statistical measure of the dispersion of returns. Measured by standard deviation or VIX.
A graph showing the relationship between bond yields and their maturities. Inversion is often a recession indicator.