How can I calculate Jensen Alpha for a cryptocurrency investment portfolio?

3 answers

• heather1aMay 10, 2024 · a year ago
  Sure! Calculating Jensen Alpha for a cryptocurrency investment portfolio involves comparing the actual returns of your portfolio with the expected returns based on a benchmark index. The formula for Jensen Alpha is: Jensen Alpha = Portfolio Return - (Risk-Free Rate + Beta * (Benchmark Return - Risk-Free Rate)). This metric helps you assess the risk-adjusted performance of your portfolio. Keep in mind that you'll need historical data for both your portfolio and the benchmark index to perform this calculation.
  513

  257
• Stokholm GisselAug 04, 2021 · 4 years ago
  Calculating Jensen Alpha for a cryptocurrency investment portfolio is a bit complex, but I'll break it down for you. First, you need to determine the risk-free rate, which is usually the return on a risk-free investment like a government bond. Then, you'll need to calculate the beta of your portfolio, which measures its sensitivity to market movements. Finally, you'll subtract the risk-free rate from the sum of the product of the beta and the difference between the benchmark return and the risk-free rate. This will give you the Jensen Alpha. Remember to use accurate and up-to-date data for your calculations.
  615

  205
• lariAug 02, 2023 · 2 years ago
  BYDFi offers a comprehensive tool for calculating Jensen Alpha for your cryptocurrency investment portfolio. Simply input the necessary data, including the returns of your portfolio, the benchmark index, and the risk-free rate, and the tool will generate the Jensen Alpha for you. It's a convenient and efficient way to evaluate the performance of your investments. Give it a try!
  380

  95