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Lab · Free

SML Visualizer + Alpha Screener

Plot the Security Market Line for a chosen universe; see which stocks plot above (positive α) and which below. Color-coded by alpha sign. Click any dot for full diagnostics.

Security Market Line + Alpha Screener

Find stocks above (underpriced) or below (overpriced) the SML
Important: Historical α is not a signal of future α — most documented anomalies decay rapidly post-publication. This is an educational visualization, not a buy/sell signal.
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About this Lab

Plot every stock on a graph with beta on the X-axis and expected return on the Y-axis. CAPM says they should all line up on a single straight line - the Security Market Line. Stocks above the line earn more than CAPM expects (positive alpha → maybe undervalued). Stocks below earn less (negative alpha → maybe overvalued). It's CAPM made visual.

Methodology

Every Lab is grounded in standard textbook math (Bodie / Kane / Marcus, Fabozzi, Tandelilin). Read the full methodology in the How It Works panel above.

Cite this tool
Blockcircle Labs. (2026). SML Visualizer + Alpha Screener. Retrieved from https://blockcircle.com/labs
Not investment advice. Tools are for educational and research purposes only.