(redirected from Tru64 UNIX)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.
Related to Tru64 UNIX: OSF1


Measure of risk-adjusted performance. Some refer to the alpha as the difference between the investment return and the benchmark return. However, this does not properly adjust for risk. More appropriately, an alpha is generated by regressing the security or mutual fund's excess return on the benchmark (for example S&P 500) excess return. The beta adjusts for the risk (the slope coefficient). The alpha is the intercept. Example: Suppose the mutual fund has a return of 25%, and the short-term interest rate is 5% (excess return is 20%). During the same time the market excess return is 9%. Suppose the beta of the mutual fund is 2.0 (twice as risky as the S&P 500). The expected excess return given the risk is 2 x 9%=18%. The actual excess return is 20%. Hence, the alpha is 2% or 200 basis points. Alpha is also known as the Jensen Index. The alpha depends on the benchmark used. For example, it may be the intercept in a multifactor model that includes risk factors in addition to the S&P 500. Related: Risk-adjusted return.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


1. The measure of the performance of a portfolio after adjusting for risk. Alpha is calculated by comparing the volatility of the portfolio and comparing it to some benchmark. The alpha is the excess return of the portfolio over the benchmark. It is important to Markowitz portfolio theory and is used as a technical indicator.

2. The excess return that a portfolio makes over and above what the capital asset pricing model estimates.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


The mathematical estimate of the return on a security when the market return as a whole is zero. Alpha is derived from a in the formula Ri = a + bRm which measures the return on a security (Ri) for a given return on the market (Rm) where b is beta. See also capital-asset pricing model, characteristic line.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


Alpha measures risk-adjusted return, or the actual return an equity security provides in relation to the return you would expect based on its beta. Beta measures the security's volatility in relation to its benchmark index.

If a security's actual return is higher than its beta, the security has a positive alpha, and if the return is lower it has a negative alpha.

For example, if a stock's beta is 1.5, and its benchmark gained 2%, it would be expected to gain 3% (2% x 1.5 = 0.03, or 3%). If the stock gained 4%, it would have a positive alpha.

Alpha also refers to an analyst's estimate of a stock's potential to gain value based on the rate at which the company's earnings are growing and other fundamental indicators.

For example, if a stock is assigned an alpha of 1.15, the analyst expects a 15% price increase in a year when stock prices are generally flat. One investment strategy is to look for securities with positive alphas, which indicates they may be undervalued.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
-- Strengthening Global Services well established Guarantee Program goals to include up to 99.999% availability for AlphaServer GS Series systems running Tru64 UNIX and OpenVMS
ClearTrust SecureControl allows customers to centrally set, enforce, and manage the security policies that govern user authentication, authorization, and single sign-on for all Web server- and Web application server-based applications running on the Compaq Tru64 UNIX operating system.
In addition to the new servers, HP has also rolled out OpenVMS 7.3-2 and Tru64 Unix V5.1B-1, which take advantage of the new Marvel hardware.
In addition, Compaq's Tru64 UNIX operating system has been rated number one in most UNIX capabilities, as well as number one in clustering, by D.H.
"Compaq's latest Tru64 UNIX Alpha Java performance results are quite impressive," affirms Steve Garone, program director for Application Development and Deployment at IT research firm International Data Corporation.
"With our AlphaServer systems and Tru64 UNIX, we are providing the technology infrastructure for some of the most advanced computing projects in the world.
Recently named a partner for Oracle's iHost applications hosting initiative, Nupremis is the first service provider to announce hosting Oracle iHost applications on AlphaServers running Tru64 UNIX, providing the most scalable and highly available platform for meeting the demands of eBusinesses.
Sun Microsystems Inc has gone on the attack against Unix rival Hewlett-Packard Co with a new migration plan design to steal away users of its Tru64 Unix AlphaServer systems.
The AlphaServer ES40 system, using Compaq's new 64-bit, 833MHz Alpha microprocessors and running Tru64 Unix and Sybase Adaptive Server Enterprise, achieved a record-breaking 36,274 transactions per minute (tpmC) in the test.
In addition Informatica has ported its data integration software products to the Compaq Tru64 UNIX operating system on the high-end AlphaServer platform, enabling its customers to leverage Compaq's server software within their analytic environments.
The supercomputers used by Celera Genomics, the Sanger Centre, and the Whitehead Institute were Compaq AlphaServers running Tru64 UNIX and TruCluster software.
-- ISV Recruitment Program: Compaq is working closely with existing application partners, such as Oracle and SAP, and emerging ISVs to deliver full e-business solutions for Compaq's Tru64 UNIX and OpenVMS operating systems.