Archive for September, 2007
Criticisms of Alpha and Beta
The previous two posts on alpha and beta being used as a measure of performance may lead you to think that alpha and beta would be a terrific way to choose investments. What’s not to like? Two easy to understand metrics which will allow you to take a look at a manager or a stock, [...]
read more »September 10 – 14, 2007: Week in Review
A better week for stocks though next week will mark some real testing for the market with the September 18 Fed meeting and CPI and PPI numbers coming. The earnings season is beginning to pick up and there will be some headliners particularly in brokerages next week as well. One can draw some confidence from [...]
read more »Portfolio Metrics: Alpha
So, now you know how to calculate beta and figure out how volatile your portfolio or individual stocks have been relative to the market. Essentially, a backwards looking statistic on how much “risk” (more appropriately how much volatility) you took on in the last x-periods with x being how ever far back you decided to [...]
read more »Portfolio Metrics: Beta
You may all have noticed the new tags on the site with “Covestor” listed. Basically, it’s a trade-sharing service which seeks to gives investing enthusiasts a way to establish an investment track record by both providing a third-party validation of returns as well as reporting of conventional portfolio performance metrics. I’ll discuss the site more [...]
read more »September 3 – 7, 2007: Week in Review
No need for graphs this week. It’s a pretty simple story. Once again, we saw a week of ups and downs with no real trend in any direction. As I mentioned in the last few week in review posts, I see the market as being in a bit of a testing/basing period right now and [...]
read more »Curious Investments: Buying Google
I decided to commit more capital to Portfolio A this month and added what was supposed to be a “full position” worth of cash. I’ve had a few stocks on my watch list over the last few days including those five which I listed as part of the hypothetical Curious Investor Equity Income Strategy, but [...]
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