Alfa & Beta
Posted: Sat Jul 16, 2011 8:18 am
Alfa
The difference between the fair and actually expected rates of return on a stock is called the stock's alpha.
Beta
The Beta coefficient is a measure of a stock's (or portfolio's) volatility in relation to the rest of the market.
These two coefficients are the foundation of modern portfolio theory.
In this version I compare the two currency pairs.
In the future I plan to add comparison portfolio / market.
But before that I have come up with Index to track market trends.