Beta is estimated as the slope from an OLS regression of the fund's daily excess returns on the benchmark's daily excess returns, using all days in the selected date range. The chart above uses the fund's data from the last year to illustrate this relationship.
To calculate realized alpha we take the fund's total return over the selected date range, subtract the risk-free total return, then subtract beta times the benchmark's total return over the period minus the risk-free total return.
To calculate annualized alpha we take the fund's annualized total return over the selected date range, subtract the annualized risk-free total return, then subtract beta times the benchmark's annualized total return over the period minus the annualized risk-free total return (we assume 252 trading days per year when annualizing).
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