These two terms can be used more in this blog.

In linear regression between asset return vs market benchmark return, beta is the slope and alpha is the y-intercept.  However, in the next period, alpha could easily jump, and the slop can also change.

— Beta is systemic risk or “overall-market risk”, risk related to the broader market. Beta as a statistic measures the strength of (past) correlation with the (volatile) market index.

Many websites say beta as a number measures realized volatility i.e. how volatile an asset is relative to the index, but I think that misses the point. If the benchmark index is steady, then high beta doesn’t mean high volatility.

Compared to alpha, “beta is relatively easy to find on investment research websites”, and IMO easier to estimate/gauge.

— Alpha is excess return, uncorrelated to the market index.

Let’s look at some important institutional investors.

Note expRatio eats into alpha (the y-intercept) and should not affect beta.

— insurers .. probably zero alpha and beta below 1.0. Insurers probably have low risk appetite since they must be very stable, resilient. I think they invest some 10-20% in eq, the rest in bonds.

ExpRatio .. high due to insurance claims and underwriting costs.
— mutual funds .. probably low alpha, since they target the less sophisticated retail investors.

ExpRatio!
— hedge funds (and some aggressive mutual funds) .. alpha-seeking
— Temasek .. seem to be a very long-term investor, often in unlisted securities.
Logically, I would expect to see some alpha, but hey, alpha is a statistic on historical data. The data may not show any alpha.