Please wait…



A measure for the differing performance of an investment.

"Alpha" represents the performance of an investment compared to a reference investment, the benchmark. A positive alpha signals a higher performance, and a negative alpha represents a underperformance. Regarding funds, the performance is usually compared to an index which tracks the overall market. In this case, a positive alpha equals a successful fund management compared to an investment in the reference market, due to the selection of individual securities.

Related topics

Our Glossary explains the most important terms to exchange business and should leave no questions unanswered. If you still miss a term, please send us an email and we will add the term soon.