The Sharpe ratio is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the excess return (or risk premium) per unit of deviation in an investment asset or a trading strategy, typically referred to as risk.
Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable market index. An alpha of 1% means the investment’s return over a selected period of time was 1% better than the market during that same period; an alpha of -1% means the investment underperformed the market.
The Beta of an investment indicates whether it is more or less volatile than the market as a whole. In general, a beta less than 1 indicates that the investment is less volatile than the market, while a beta more than 1 indicates that the investment is more volatile than the market.
The holdings information we provide indicates the % weighting for the stocks or ETFs within our Strategies. To calculate exactly how many shares to buy in your account, simple multiply the total value of your account by the % weighting and then divide that amount by the price per share of the stock or ETF.
For example: If your account value is $100,000, and you need a 14% weighting in TLT (trading at $123.30/share), the calculation would be:
100,000 * .14 = $14,000 / $123.30 = 113.54. Round down and purchase 113 shares of TLT.
Not Directly. However, our parent company, Renaissance Capital Management, LLC is a Registered Investment Advisor and Morningstar 5 Star Manager offering all of the Strategies available here as well as several additional Stock Portfolios. Click on the RCM logo at the bottom of this page to learn more.