Romulus and Remus are the eponym of Rome as Alpha and Beta are the eponym of investing.
Romulus and Remus are the mythical twins of Rome; Alpha and Beta are the non-fictional twins of asset management.
Story tellers tell us that Romulus and Remus were suckled by a wolf.
Analysts tell us that investors get chased by a bull (a lot of "bull") and a bear.
Twins possess sibling personality with individual distinctions.
Such is the case for Alpha and Beta.
Alpha says, "It's all about me.
" Alpha goes its own way with selfish interests.
Alpha does not care much about the crowd it travels with.
Alpha gets measured by unique qualities.
* Investment jargon defines Alpha as A measure of a stocks price fluctuation * Price change/fluctuation reflects corporate earnings increases * Earnings momentum: it's all about money, corporate earnings * Price momentum: a stock or group of stocks increase value above market or index averages * A stock with an alpha of 1.
10 may increase 10% annually above the broad market Ever play "Where's Waldo?" Finding Alpha is the same.
Analysts love the search.
Waldo hides in a maze of images.
Stocks with alpha potential hide within a stock index.
Essentially, a money manager must identify alpha, buy the stock, and sell it before it loses its alpha momentum.
None too easy! Beta is the other twin.
Much more sensitive than Alpha.
A stock with a high beta becomes downright indignant and emotional.
A beta of 1.
5 means the stock price will fluctuate 50% more than a market index.
A stock with a low beta possesses a reserved nature.
It just follows the crowd.
* Investment jargon defines Beta as Beta measures a stocks up or down movement against a family or index of stocks * Low beta suggests low risk, and high beta says, "I'm emotional or volatile.
" * Beta likes company; it finds relevance in a group of stocks rather than by itself.
* Portfolios with high beta have more risk Seems to me that Alpha is the first born of this pair.
Alpha exhibits self-confidence and self-assurance.
Alpha likes bucking the trend; Beta seems to either get upset or bored.
Despite such eccentricities the Romulus and Remus investment twins do what they are made to do: they measure stock and portfolio risk and return.
"Never spend your money before you have it.
" - Thomas Jefferson, 3rd president of US (1743 - 1826)
Romulus and Remus are the mythical twins of Rome; Alpha and Beta are the non-fictional twins of asset management.
Story tellers tell us that Romulus and Remus were suckled by a wolf.
Analysts tell us that investors get chased by a bull (a lot of "bull") and a bear.
Twins possess sibling personality with individual distinctions.
Such is the case for Alpha and Beta.
Alpha says, "It's all about me.
" Alpha goes its own way with selfish interests.
Alpha does not care much about the crowd it travels with.
Alpha gets measured by unique qualities.
* Investment jargon defines Alpha as A measure of a stocks price fluctuation * Price change/fluctuation reflects corporate earnings increases * Earnings momentum: it's all about money, corporate earnings * Price momentum: a stock or group of stocks increase value above market or index averages * A stock with an alpha of 1.
10 may increase 10% annually above the broad market Ever play "Where's Waldo?" Finding Alpha is the same.
Analysts love the search.
Waldo hides in a maze of images.
Stocks with alpha potential hide within a stock index.
Essentially, a money manager must identify alpha, buy the stock, and sell it before it loses its alpha momentum.
None too easy! Beta is the other twin.
Much more sensitive than Alpha.
A stock with a high beta becomes downright indignant and emotional.
A beta of 1.
5 means the stock price will fluctuate 50% more than a market index.
A stock with a low beta possesses a reserved nature.
It just follows the crowd.
* Investment jargon defines Beta as Beta measures a stocks up or down movement against a family or index of stocks * Low beta suggests low risk, and high beta says, "I'm emotional or volatile.
" * Beta likes company; it finds relevance in a group of stocks rather than by itself.
* Portfolios with high beta have more risk Seems to me that Alpha is the first born of this pair.
Alpha exhibits self-confidence and self-assurance.
Alpha likes bucking the trend; Beta seems to either get upset or bored.
Despite such eccentricities the Romulus and Remus investment twins do what they are made to do: they measure stock and portfolio risk and return.
"Never spend your money before you have it.
" - Thomas Jefferson, 3rd president of US (1743 - 1826)
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