|IBM -- USA Stock|| |
USD 134.25 1.25 0.94%
International Business treynor-ratio technical analysis lookup allows you to check this and other technical indicators for International Business Machines or any other equities. You can select from a set of available technical indicators by clicking on the link to the right. Please note, not all equities are covered by this module due to inconsistencies in global equity categorizations and data normalization technicques. Please check also Equity Screeners
to view more equity screening tools
International Business Machines has current Treynor Ratio of (0.08)
. The Treynor is reward-to-volatility ratio that expresses the excess return to the beta of the equity or portfolio. It is similar to the Sharpe ratio, but instead of using volatility in the denominator, it uses the beta of equity or portfolio. Therefore the Treynor Ratio is calculated as [(Portfolio return - Risk free return)/Beta].
| = |
ER[a] - RFR
| = |
|ER[a]|| = || Expected return on investing in International Business|
|BETA|| = || Beta coefficient between International Business and the market|
|RFR|| = || Risk Free Rate of return. Typically T-Bill Rate|
Treynor Ratio Comparison
International Business Machines is rated below average
in treynor ratio category among related companies. It is rated below average
in maximum drawdown category among related companies .
This ratio was developed by Jack Treynor to measure how well an investment has compensated its investors given its level of risk. The Treynor ratio relies on beta, which measures an investment sensitivity to market movements, to gauge risk. The premise underlying the Treynor ratio is that systematic risk--the kind of risk that is inherent to the entire market (represented by beta)--should be penalized because it cannot be diversified away.