Federated Short Treynor Ratio
| FSTIX Fund | | | USD 8.50 0.01 0.12% |
The Treynor Ratio indicator for Federated Short is constructed from normalized market data. Some instruments may report limited inputs depending on trading history.
Investing Opportunities provides context for diversified portfolio design. Refined allocation visibility enhances overall portfolio context. Federated Short Term Income can be included in a portfolio to evaluate diversification impact. Weighting is typically determined by the allocation framework in use. Broader economic conditions can influence Federated Short Term Income's mutual fund valuation — related indicators include
signals in gross domestic product.
Federated Short Term Income has current Treynor Ratio of
-1.77. The Treynor is the 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] - RFRBETA |
| = | -1.77 | |
| ER[a] | = | Expected return on investing in Federated Short |
| BETA | = | Beta coefficient between Federated Short and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Treynor Ratio Relative To Other Indicators
Federated Short Term Income is rated
below average in treynor ratio among similar funds. It is currently under evaluation in maximum drawdown among similar funds .
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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