Unknown Indicator
Treynor Ratio In A Nutshell
Using the Treynor ratio is essentially measuring the returns of your investment minus what you may have earned in an environment where there was minimal to no risk. This is important because you can measure how much of a premium your equity may be trading at or a discount. Not only that, but you can being to measure the amount of risk you are taking for the return on investment you are getting.
There are many ratios out there that measure anything from risk to cash flow, but the Treynor ratio is around to help traders and investors measure risk to reward.
Closer Look at Treynor Ratio
If you have yet to understand risk, begin looking at other risk measurements such as risk adjusted performance and understand what the risk free rate of return is. Ratios us as this are meant to help you mitigate risk and continue to bring in underprice equities. The goal of any portfolio is to increase risk while keeping a stable risk level.
Risk is one of the most important aspects of investing and finance and should be monitored with care. Using this ratio can also help you compared equities apples to apples, letting you understand which investments may be offering better value than others. When implementing this you should doodle on the side until you fully understand how to use this ratio. After that, feel free to implement this as you wish and begin exploring the world of risk. If you get stuck, reach out to an investing professional and they can help to point you in the right direction.
Other Indicators
All Technical Analysis
Trending Themes
If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment. | USD Crypto Fund Invested one share | |
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |