American Funds Treynor Ratio

RERAX -- USA Fund  

USD 52.64  0.02  0.038%

American Funds treynor-ratio technical analysis lookup allows you to check this and other technical indicators for American Funds EuroPacific Gr 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
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American Funds EuroPacific Gr has current Treynor Ratio of 0.145. 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].
Treynor Ratio 
 = 
ER[a] - RFR 
BETA 
 = 
0.145
ER[a] =   Expected return on investing in American Funds
BETA =   Beta coefficient between American Funds and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Treynor Ratio Comparison

American Funds EuroPacific Gr is rated fourth largest fund in treynor ratio among similar funds. It is currently under evaluation in maximum drawdown among similar funds reporting about  25.94  of Maximum Drawdown per Treynor Ratio. The ratio of Maximum Drawdown to Treynor Ratio for American Funds EuroPacific Gr is roughly  25.94 
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.
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