NetEase Inc Treynor Ratio
| NETTF Stock | | | USD 23.41 0.15 0.64% |
Observed values used to calculate the Treynor Ratio technical indicator for NetEase. Additional screening context is available through
Equity Screeners.
NetEase has current Treynor Ratio of 11.71. 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 |
| = | 11.71 | |
| ER[a] | = | Expected return on investing in NetEase Inc |
| BETA | = | Beta coefficient between NetEase Inc and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
NetEase Inc Treynor Ratio Peers Comparison
NetEase Inc Treynor Ratio Relative To Other Indicators
NetEase holds the top spot in treynor ratio across its competitive set. It is currently under evaluation in maximum drawdown across its competitive set at roughly
2.19 Maximum Drawdown per unit of Treynor Ratio. NetEase carries a
2.19 x Maximum Drawdown-to-Treynor Ratio ratio
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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