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

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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