The starting points are different. Alpha strategy is an active investment strategy; Beta strategy is a passive investment strategy.

In mature markets, alpha strategies and beta strategies are two types of investment strategies based on different starting points to obtain excess returns that exceed the performance of the market. They are the two mainstream investment strategies of pursuing alpha returns and pursuing beta returns.

Alpha strategy is an active investment strategy that mainly relies on selected industries and individual stocks to outperform the market.

The alpha strategy pursues alpha returns, which refers to the portion of investment returns that exceeds market returns.

Activist investors are suitable for alpha strategies and will have an advantage especially during rising market phases.

Beta strategy is a passive investment strategy that mainly relies on grasping the general trend of the market to obtain returns that exceed the market.

The beta strategy pursues market returns, that is, beta returns.

Steady investors are suitable for beta strategies.

The pure alpha strategy aims to strip out pure alpha returns through short-selling indexes, which requires high operational capabilities and capital thresholds, as well as high stability.