Investor Glossary-weighted alphaInvestor Glossary-weighted alphaInvestor Glossary-weighted alphaInvestor Glossary-weighted alphaInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Weighted Alpha

The HTML to link to this page
 

Weighted alpha is a measure of stock price movements over a given period of time, typically one year. Weighted alpha assigns a higher weight to more recent fluctuations than less recent ones. Because of this difference in weighting, weighted alpha emphasizes the most recent price changes and therefore can be used to gauge short-term trends in stock price movements. Technical analysts often use weighted alpha to get a clear picture of which stocks have shown strength over the period, specifically the more recent part of the period. Using weighted alpha can help analysts to gauge the positive momentum (i.e. positive weighted alpha) or negative momentum (negative weighted alpha) of a particular stock and may signal for a buy or a sell. It should be noted that some analysts limit how much a daily price may fluctuate within the calculation for Weighted Alpha, thereby setting aside large single-day movements that may represent market overreaction.



Rate this Weighted Alpha definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: stock market close, 1031 exchange, risk management, ex-dividend date, average price per share, Zero Cost Collar, 1035 exchange, implied volatility, option premium, inflation, debt service coverage, real GDP, phantom income, class C shares, labor relations, current ratio, covered put, irrevocable trust, annual return, ex-dividend, FICO score, APR, Key Rate Duration, margin rate, FTSE, command economy, LIBOR, 144a, stock split, open position, dividends payable, balance sheet, reverse mortgage, VIX, liquidity ratio, EBITDA, 401a, required rate of return, deferred revenue, diluted share, per diem, minority interest, in escrow, retained earnings, wholly-owned subsidiary, deferred tax, cancelled check, limit order, quality assurance


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use