--- title: "Which alpha | RupeeCase Terminal" description: "The app shows two alphas: total return points on a Marketplace card, and the difference in growth per year in the key figures of a strategy or a portfolio." source_url: "https://www.rupeecase.com/learn/terminal/which-alpha" --- ## Watch: Which alpha Card alpha: total return gap over the full history.Alpha: which of the two alphas is this? 5 chapters, 1:08, with voice and music 1. [Chapter 1Where it is0:21](/instiv2/media/tut3/which-alpha-where-phone-dark-v3-va2.mp4) 2. [Chapter 2What it means0:25](/instiv2/media/tut3/which-alpha-meaning-phone-dark-v3-va2.mp4) 3. [Chapter 3Worked example0:06](/instiv2/media/tut3/which-alpha-example-phone-dark-v3-va2.mp4) 4. [Chapter 4How to read it0:06](/instiv2/media/tut3/which-alpha-reading-phone-dark-v3-va2.mp4) 5. [Chapter 5Watch out0:10](/instiv2/media/tut3/which-alpha-watch-phone-dark-v3-va2.mp4) Screens from the RupeeCase app on sample data. Strategy figures are model, back tested, as of the date on screen. Formula and example numbers are illustrative. Mark as watched 3In this screen ## Every button the video points at. A still from each chapter with its buttons and fields numbered. Pick a number to zoom in on it; hover the still for a close up; Esc shows the whole screen again. Sample data, no order is placed. **1**Where it is**2**What it means ### Chapter 1: Where it is 1 Show the whole screen 1 Show the whole screen 1. 1**Total return points**Card alpha: total return gap over the full history. Shown in the video, not on this still 2. 2**Per year, this period** Key figure alpha: growth per year gap over the period. Shown in the video, not on this still ### Chapter 2: What it means 1 Show the whole screen 1. 1**Waits for a year**A portfolio's alpha is the same per year gap, from your own value. Under a year of history it reads n/a. Shown in the video, not on this still ## Where it is ScreenMarketplace, Strategy, PortfolioAdvanced Alpha shows in Advanced: on Marketplace cards and in the key figures of a strategy page and of a portfolio. Indices in this video: [Allcap](/strategies/allcap) (strategy page) and [Large Cap Multi Asset](/strategies/largecap-multi-asset) (the sample portfolio). ## What it means Alpha here means how far ahead of or behind its benchmark something is, but the two places measure it differently. The card uses total return points over the full history. The key figure uses growth per year over the chosen period; on a portfolio it is worked out the same way from the portfolio's own weekly value, and reads n/a until there is a year of it. None of these is a regression alpha; that one is "Jensen alpha per year" in the Risk tab. ## The formula Card: net return minus benchmark return, over the full history. Key figure: growth per year minus the benchmark's growth per year, over the chosen period, on a strategy and on a portfolio. As computed in the RupeeCase app`Card alpha = net total return - benchmark total return (points, full history) Key figure alpha = growth per year - benchmark growth per year (chosen period, 1 year or more) On a portfolio the same rule reads its own weekly value; n/a under 1 year` ## Worked example Example only * Model +300% total, benchmark +60%: card alpha +240 points * Model 30% a year, benchmark 10% a year: key alpha +20 points a year * A portfolio 4 months old: alpha n/a until it has a year ## How to read it * First check which screen you are on, then read the number. * A total return gap grows with time; a per year gap does not. * Positive means ahead of the benchmark over that span. ## Watch out * The same word shows different numbers: on Allcap the card and key figure differ widely. * The benchmark is a price index with no costs; a young portfolio shows n/a. * The learn module teaches Jensen alpha; the app shows it only in the Risk tab. ## Transcript Tap Sound on for voice and music. These are the captions of the video, chapter by chapter. 1. 0:00**Where it is.** Card alpha: total return gap over the full history. 2. 0:21**What it means.** A portfolio's alpha is the same per year gap, from your own value. 3. 0:46**Worked example.** Worked example, example only: Model +300% total, benchmark +60%: card alpha +240 points. Model 30% a year, benchmark 10% a year: key alpha +20 points a year. A portfolio 4 months old: alpha n/a until it has a year. 4. 0:52**How to read it.** How to read it: First check which screen you are on, then read the number. A total return gap grows with time; a per year gap does not. Positive means ahead of the benchmark over that span. 5. 0:58**Watch out.** Watch out: The same word shows different numbers: on Allcap the card and key figure differ widely. The benchmark is a price index with no costs; a young portfolio shows n/a. The learn module teaches Jensen alpha; the app shows it only in the Risk tab. ## Terms in this tutorial * [alpha](/learn/glossary#alpha)How far a return was ahead of or behind its benchmark. * [beta](/learn/glossary#beta)Sensitivity of a portfolio to the market. * [CAGR](/learn/glossary#cagr)Compound Annual Growth Rate. ## Learn it in depth * [Module 4.4: Performance Measurement9 min read, free](/learn/path-4/module-4-4-performance-measurement) TKeep watching ## Next tutorial. [0:54Next tutorial, Read a strategySharpe and volatility: how bumpy was the ride?Volatility is the yearly swing of weekly returns. Sharpe is return above a 6 percent risk free rate per unit of that swing. How the app computes both.Watch next](/learn/terminal/sharpe-and-volatility) ### Related tutorials * [0:57Read a strategy, BasicThe benchmark line: what is the strategy compared with?0:57 video, BasicWatched](/learn/terminal/benchmark-line) * [1:06Read a strategy, BasicGrowth per year: how fast did the model grow?1:06 video, BasicWatched](/learn/terminal/growth-per-year) * [0:56Read a strategy, BasicMax drawdown: how bad did it get?0:56 video, BasicWatched](/learn/terminal/max-drawdown) [All 67 terminal tutorials](/learn/terminal/) Try it in Practice ## See it on your own screen. Practice mode runs the whole terminal without real orders, so you can open any strategy and find every screen from this tutorial for yourself. [Sign up for RupeeCase](https://invest.rupeecase.com/signup)[Glossary](/learn/glossary) Explore next ## Keep learning the terminal. * [TutorialThe riskometer: what sets Low to Very High?0:45 video, Basic](/learn/terminal/riskometer) * [TutorialMinimum investment: why does each strategy have one?0:51 video, Basic](/learn/terminal/minimum-investment) * [TutorialRebalance cadence: how often does the strategy trade?0:56 video, Basic](/learn/terminal/rebalance-cadence) * [TutorialRs 10,00,000 became: what do the hero figure and periods show?1:08 video, Basic](/learn/terminal/hero-figure-and-periods) * [TutorialNet return and charges: what do estimated costs take?0:47 video, Basic](/learn/terminal/net-return-and-charges) * [TutorialThe key figures card: what are the four lead figures?0:58 video, Basic](/learn/terminal/key-figures-card) Community ## Join my WhatsApp group. Scan the code, fillFill one short form, and join my WhatsApp group. Slides, sources, factsheets and the rebalance logs live there, and members join a daily Google Meet with me. [Sign up for RupeeCase](https://invest.rupeecase.com/signup) [Join the WhatsApp group](https://forms.gle/C6HMtM1Z2GfeocQV7) [One form, one group](https://forms.gle/C6HMtM1Z2GfeocQV7)Scan with your phone camera Education only, not investment advice. Screens are recordings of the RupeeCase app on sample data. Strategy figures are model, back tested and after estimated charges, as of the date on screen; they are not client returns and not a promise of future returns. Formula and worked example numbers are illustrative. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a mutual fund, a PMS, an AIF or a SEBI registered investment adviser. Trades execute through your own SEBI registered broker and the shares sit in your own demat. Investments in securities markets are subject to market risks.