Live Tool

Alpha Clustering

Alpha Clustering groups stocks by risk, alpha, Sharpe profile, and momentum so you can see leadership, laggards, and regime shifts at a portfolio level.

12months
6cluster types
1free snapshot

Key equations

\[ \alpha = R_i - \left(R_f + \beta_i(R_m - R_f)\right) \]

Alpha measures the excess return beyond what market exposure alone would explain.

\[ \text{Sharpe} = \frac{R_i - R_f}{\sigma_i} \]

Sharpe compares return to volatility so you can tell whether performance came efficiently.

How to read the visual map

Scatter plot: volatility on the x-axis, alpha on the y-axis.
Bubble size: stronger Sharpe-style quality appears as larger emphasis.
Heatmaps: clusters are compared across momentum and risk dimensions to show rotation.

Free users can inspect the Month 12 snapshot. Pro unlocks the full month-by-month timeline to track cluster migration through time.

Example use case

If strong names begin leaving Compounders and a growing share of new leadership moves into Momentum Runners, the market may be transitioning from stable leadership to a more speculative phase.

Best use case

Use Alpha Clustering when you want to understand internal market rotation instead of looking at price action one stock at a time.

Open Alpha Clustering
Charts