{"id":207,"date":"2024-06-25T00:16:37","date_gmt":"2024-06-25T00:16:37","guid":{"rendered":"https:\/\/diversiview.online\/help\/?p=207"},"modified":"2025-03-13T22:55:15","modified_gmt":"2025-03-13T22:55:15","slug":"portfolio-alpha","status":"publish","type":"post","link":"https:\/\/diversiview.online\/help\/portfolio-alpha\/","title":{"rendered":"Portfolio Alpha"},"content":{"rendered":"\n<p>Portfolio Alpha indicates the difference between the portfolio\u2019s expected return and the expected return of the entire market*. That is, a positive Alpha shows how much more the portfolio is expected to earn compared with the entire market.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-13-1024x576.png\" alt=\"Diversiview Portfolio Analysis Report Portfolio Alpha.\" class=\"wp-image-1241\" style=\"width:700px\" srcset=\"https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-13-1024x576.png 1024w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-13-300x169.png 300w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-13-768x432.png 768w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-13-1536x864.png 1536w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-13-2048x1151.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Alpha is calculated using Jensen\u2019s measure (<a href=\"https:\/\/www.investopedia.com\/terms\/j\/jensensmeasure.asp\">see formula here<\/a>) and is always considered in conjunction with Portfolio Beta. Investors generally aim to get a good portfolio performance (i.e., a positive Alpha) for the level of portfolio volatility indicated by Beta.<\/p>\n\n\n\n<p>You can find the Portfolio Alpha value on your dashboard or the Diversiview analysis page, under the \u2018Performance &amp; Benchmark\u2019 section. The table shows two values:<\/p>\n\n\n\n<ul>\n<li>The left value indicates the portfolio alpha of the <strong>current<\/strong> asset allocation.<\/li>\n\n\n\n<li>The right value indicates the portfolio alpha of the <strong>optimal <\/strong>asset allocation.<\/li>\n<\/ul>\n\n\n\n<p>*For the purpose of Alpha calculations using Jensen\u2019s method, Diversiview uses the index that you select from your profile settings. To learn how to select your preferred market benchmark, <a href=\"https:\/\/diversiview.online\/help\/selecting-your-preferred-market-benchmark\/\">click here<\/a>.<\/p>\n\n\n\n<p>For more help, visit <a href=\"https:\/\/www.youtube.com\/playlist?list=PL56L8p3qXuVQuBSOfzSz917rmEzAE82bl\">Diversiview\u2019s YouTube channel<\/a> and check out our explanatory videos.<\/p>\n\n\n\n<p><strong>Ready to learn more about your portfolio&#8217;s alpha? <a href=\"https:\/\/diversiview.online\/login\">Log in<\/a> or <a href=\"https:\/\/diversiview.online\/register\">sign up<\/a> to your account today to start analysing and optimising your investment portfolio.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Portfolio Alpha indicates the difference between the portfolio\u2019s expected return and the expected return of the entire market*. That is, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Portfolio Alpha | Diversiview Help","_seopress_titles_desc":"Portfolio Alpha is the difference between the portfolio\u2019s expected return and the expected return of the entire market. Learn what this means for your portfolio.","_seopress_robots_index":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[37,95,5,51,33],"tags":[],"_links":{"self":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/207"}],"collection":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/comments?post=207"}],"version-history":[{"count":9,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/207\/revisions"}],"predecessor-version":[{"id":1383,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/207\/revisions\/1383"}],"wp:attachment":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/media?parent=207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/categories?post=207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/tags?post=207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}