Concept · Stock-level risk (bottom-up)
Alpha (α)
Skill-attributable excess return at the position level.
In depth
In a clean factor model, alpha is the conditional mean of the residual — return not explained by any factor exposure. RiskModels also exposes a residual mean-reversion signal built on the same residual series.
Compute it with the API
GET /api/metrics/{ticker}
# pip install riskmodels-py
client.get_metrics("NVDA")In the methodology
Residual mean-reversion signal →Referenced by (5)
- The Industry Beneath the Index
Vasicek peer-β cross-sections expose what sector ETFs paper over
- Every Position Has a Level Too
How RiskModels picks the right hedge depth automatically, per stock, per day
- Cascade Hedging and the Cost of Interpretability
Subsector ETF value, joint optimization, and executable hedge layers across 9,074 US mutual funds
- Who got NVDA right before it became benchmark exposure?
Early ownership, active conviction, and residual attribution in U.S. mutual-fund managers, 2019–2026
- ERM3 Cascade-Residual Persistence and the Allocator Skill Signal
Top-decile rank persistence, active-share comparison, and tail-stratified inference across 1,000 top-AUM US mutual funds