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.Impulse Invested over 100 shares | ||
Automobiles and Trucks Invested over 60 shares | ||
Warren Buffett Holdings Invested few shares | ||
Investor Favorites Invested over 40 shares | ||
Baby Boomer Prospects Invested over 40 shares | ||
Macroaxis Picks Invested over 40 shares | ||
Momentum Invested few shares | ||
Synthetics Invested over 100 shares | ||
Chemicals Makers Invested over 500 shares |
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |