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Strategies & Market Trends : TA Science Projects & Experimental Indicators -- Ignore unavailable to you. Want to Upgrade?

To: ftth who wrote (128)	5/30/1998 8:29:00 PM
From: Smooth Drive	Read Replies (3) \| Respond to of 237

Hi Dave, I enjoy your "Ramblings." So please, ramble. "Do you mean basically discuss how alpha is calculated?" That would be great. "I'm not sure I see what you're looking for with the monthly returns question, and I'd rather answer the specific question you have rather than rambling on about something off in left field." A reprint of the first part of the referenced interview with Navellier: High-alpha stocks are stocks that demonstrate better monthly returns independent of the stock market. We regress or statistically compare the returns of individual stocks to the returns of the broad market. The returns of the stock that are correlated to the market are referred to as the beta˜, while the returns of the stock that are independent of the returns of the market are referred to as the alpha. A stock with a positive alpha theoretically is outperforming the market based on its own merits and hopefully will continue to do so. A stock with a negative alpha, however, would be a stock to avoid because it is underperforming the market based on its own merits. My monthly returns question was generated from the above. I guess I was just looking for a Dave Horne perspective/explanation. Thanks, and take care. Eric