Concepts
HoodFold Alpha
HoodFold's return minus the underlying benchmark. It can be negative.
HoodFold Alpha measures HoodFold performance relative to simply holding the underlying tokenized-stock benchmark. It is the single number that answers: would you have been better off just holding?
definition
HoodFold Alpha = HoodFold total return − benchmark return
Positive example
| Return | |
|---|---|
| NVDA Hold | +20.0% |
| NVDA HoodFold | +23.0% |
| HoodFold Alpha | +3.0% |
Where the +23.0% came from
| Component | Contribution |
|---|---|
| Stock movement | +20.0% |
| Trading fees | +3.2% |
| Lending yield | +1.5% |
| Impermanent loss | −1.1% |
| Protocol fees | −0.6% |
| Total HoodFold return | +23.0% |
HoodFold Alpha is not guaranteed to be positive. Trading fees and lending yield may not compensate for impermanent loss, slippage and fees over a given period.