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The Skinny on Options: Abstract Applications - June 30, 2025 - What is Alpha?

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Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
In this episode of the Skinny on Options: Abstract Applications, Dr. Jim leads the discussion with Tom and Tony on the concept of alpha in trading. Alpha represents excess risk-adjusted returns over a benchmark, typically the S&P 500. Active traders can find hope in the notion that many models, like the Capital Asset Pricing Model and Fama-French three-factor model, show statistically significant alpha, suggesting additional factors impacting returns remain undiscovered. This implies skilled traders may identify strategies that can consistently generate alpha over time, offering potential insights into portfolio management.
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1592 episodes

Artwork
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Manage episode 491685372 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
In this episode of the Skinny on Options: Abstract Applications, Dr. Jim leads the discussion with Tom and Tony on the concept of alpha in trading. Alpha represents excess risk-adjusted returns over a benchmark, typically the S&P 500. Active traders can find hope in the notion that many models, like the Capital Asset Pricing Model and Fama-French three-factor model, show statistically significant alpha, suggesting additional factors impacting returns remain undiscovered. This implies skilled traders may identify strategies that can consistently generate alpha over time, offering potential insights into portfolio management.
  continue reading

1592 episodes

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