Romulus and Remus are the eponym of Rome as Alpha and Beta are the eponym of investing. Romulus and Remus are the mythical twins of Rome; Alpha and Beta are the non-fictional twins of asset management. Story tellers tell us that Romulus and Remus were suckled by a wolf. Analysts tell us that investors get chased by a bull (a lot of "bull") and a bear.
Twins possess sibling personality with individual distinctions. Such is the case for Alpha and Beta. Alpha says, "It's all about me." Alpha goes its own way with selfish interests. Alpha does not care much about the crowd it travels with. Alpha gets measured by unique qualities.
Earnings momentum: it's all about money, corporate earnings
Price momentum: a stock or group of stocks increase value above market or index averages
A stock with an alpha of 1.10 may increase 10% annually above the broad market
Ever play "Where's Waldo?" Finding Alpha is the same. Analysts love the search. Waldo hides in a maze of images. Stocks with alpha potential hide within a stock index. Essentially, a money manager must identify alpha, buy the stock, and sell it before it loses its alpha momentum. None too easy!
Beta is the other twin. Much more sensitive than Alpha. A stock with a high beta becomes downright indignant and emotional. A beta of 1.5 means the stock price will fluctuate 50% more than a market index. A stock with a low beta possesses a reserved nature. It just follows the crowd.
Investment jargon defines Beta as
Beta measures a stocks up or down movement against a family or index of stocks
Low beta suggests low risk, and high beta says, "I'm emotional or volatile."
Beta likes company; it finds relevance in a group of stocks rather than by itself.
Portfolios with high beta have more risk
Seems to me that Alpha is the first born of this pair. Alpha exhibits self-confidence and self-assurance. Alpha likes bucking the trend; Beta seems to either get upset or bored. Despite such eccentricities the Romulus and Remus investment twins do what they are made to do: they measure stock and portfolio risk and return.
"Never spend your money before you have it." - Thomas Jefferson, 3rd president of US (1743 - 1826)
Alpha And Beta Particles
Throughout any normal 24-hour day here on Earth, we humans all tend to go through a natural cycle of brainwave activity that ranges from 2hz up to about 35hz. There are four main brainwave state categories which progress upward, called 'delta,' 'theta.' 'alpha,' and 'beta.' The unit 'hz' stands for 'hertz,' which is a measurement of frequency per second.
The range of about 2-8hz means a person s extremely relaxed, and a person is more awake and alert around 25-35hz.
The lowest brainwave state is called 'Delta,' which ranges from about 1-3 hz. This is where your brain will tend to cycle while your are in a very deep sleep called REM sleep, and this can be a dreamless state or your dreams that you do have will be difficult to remember.
Some people who spend lots of time meditating are capable of reaching the delta state while remaining aware of their surroundings. If you can reach this state, you will experience vivid imagery, powerful visualizations, and an unrivaled sense of calm and well-being.
One step up from delta is the 'Theta' brainwave state, which is in the 3-7hz range. You will experience this level during serene meditation or during a dreamy, light sleep. Some of the best and most vivid dreams that people have occur in the theta state, and it is easier to remeber dreams from theta. It is easier to reach this level during meditation than it is to reach delta, and the imagery and creativity you feel during this state will be no less dramatic.
'Alpha' is what some people refer to as the magical, intuitive state. Of the different brainwave levels that a person can reach during relaxation, meditation and contmplation, alpha is probably the best for manifesting your desires, solving any problems you may have in your life, and increasing your intuition and creativity.
If you do about 1 hour or more of alpha meditation per day while wearing headphones, perhaps at the times of the day when you are naturally relaxed such as just after waking in the morning or just before bed, you will feel a sense of calm and serenity that will last long after the meditation is over.
Eventually, after you become experienced with alpha, you will exude a sense of knowingness, confidence, and serenity all the time that will make people naturally attracted to you ad want to be around you more. You will have a much easier time getting job promotions, finding new lovers, and creating new friendly relationships with new people. Now you can see why people refer to alpha as the magic state!
During the day when we are awake and alert, we experience the 'Beta' brainwave state. There is very little imagnation or creativity in this state since it is centered mostly on the left, non-intuitive portion of the human brain. Also, if a person is worrying or is under stress, their brainwave activity will be very high, somewhere around 35hz.
Now we all reach these different brainwave states naturally, but there is a technology called brainwave entrainment that can allow a person to reach the theta and alpha states even faster. This can allow for dramatic improvements in a person's life faster than they ever thought possible.
Both A Raymond Randall & Richard Weber are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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