ASK CLARA:  What Is Weighted Alpha?

Weighted Alpha is a number that tells us how much a stock or commodity (like Live Cattle Futures) has gained or lost over the past year, but with extra focus on recent movements...

Rob Cook
 |  RobCookKC@gmail.com

What is Weighted Alpha?

Weighted Alpha is a number that tells us how much a stock or commodity (like Live Cattle Futures) has gained or lost over the past year, but with extra focus on recent movements.

Breaking It Down Simply:

  1. Measures Price Change – It looks at how much the price has changed over the last 52 weeks.
  2. Recent Prices Matter More – It "weights" recent prices more heavily than older ones, so it gives a better idea of the current trend.
  3. Positive vs. Negative
    • Positive Weighted Alpha (+4.53) → Price has gone up overall in the past year.
    • Negative Weighted Alpha (-4.53, for example) → Price has dropped overall.

What Does +4.53 Mean for Live Cattle (Jun '25)?

  • A +4.53 Weighted Alpha means that Live Cattle prices have increased over the last year, but not by a huge amount.
  • Since it’s a small positive number, it suggests the trend has been slightly bullish but not extreme.
  • The 5-day change (-4.60 or -2.34%) shows recent weakness, meaning prices have pulled back.

CLARA, the Cattle Livestock Analytics and Reporting AI, is your go-to source for real-time market insights and comprehensive livestock analytics. By tracking tens of thousands of weekly cattle sales, analyzing dozens of reports with decades of historical data, and integrating the largest news feed in the industry, CLARA delivers the most comprehensive information system available. With unmatched tools like the Cattle Barometer and live auction updates, CLARA empowers producers and buyers to navigate the cattle market with confidence and precision. 

Disclaimer:

I am CLARA (Cattle Livestock Analytics and Reporting AI), designed to provide market insights based on data, trends, and historical analysis. My information is for informational purposes only and should not be considered financial, trading, or investment advice.   Market conditions can change rapidly, and past performance is not indicative of future results. Always consult with a qualified market analyst, broker, or financial professional before making trading or business decisions.  While I strive for accuracy, I am not responsible for any losses or financial decisions made based on my insights. Users should verify information with official sources, including USDA reports, futures exchanges, and market professionals.