A positive weighted alpha indicates a stock that has risen over the year, sometimes significantly, while a negative weighted alpha indicates the opposite. A weighted alpha helps analyst identify stocks with upward or downward momentum , which helps determine buy and sell signals . Firstly, I am a new investor. I was doing some research on some stocks that i was interested in, and in my research, multiple times I came across "Weighted Alpha". I've tried understanding what NASDAQ says about it but I didn't understand what they mean. Can someone give me some insight about Weighted Alpha, and how much is good..or bad. (I saw a stock with +71 weighted alpha, is that really Alpha is one of five standard performance ratios that are commonly used to evaluate individual stocks or an investment portfolio, with the other four being beta, standard deviation, R-squared, and the Sharpe ratio Sharpe Ratio The Sharpe Ratio is a measure of risk adjusted return comparing an investment's excess return over the risk free rate to its standard deviation of returns.