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OPEN-SOURCE SCRIPT

Alpha

By Niklaus
Alpha is a measure of the active return on an investment, the performance of that investment compared to the S&P500 index, where 0.01 = 1%

  • alpha < 0: the investment has earned too little for its risk (or, was too risky for the return)
  • alpha = 0: the investment has earned a return adequate for the risk taken
  • alpha > 0: the investment has a return in excess of the reward for the assumed risk

alphabetacapm

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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Niklaus

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