Butterfly Network Treynor Ratio
| BFLY Stock | | | USD 4.24 -0.31 -6.81% |
The Treynor Ratio measures excess return per unit of systematic risk (beta) rather than total risk. It is calculated as (Portfolio Return - Risk-Free Rate) / Beta, isolating how well the asset compensates investors for market exposure that cannot be diversified away. Below is Butterfly Network's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
Butterfly Network's Treynor Ratio of 0.1524 reflects positive return per unit of systematic risk. Butterfly Network has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.1524 | |
| ER[a] | = | Expected return on investing in Butterfly Network |
| BETA | = | Beta coefficient between Butterfly Network and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Butterfly Network's Treynor Ratio of 0.1524 falls below the 3.66 peer average. Values range from -4.4927 (Day One Biopharmaceuticals) to 26.26 (Valneva SE ADR), with wide dispersion across the group. Butterfly Network has earned less return per unit of systematic risk than the peer average.
Treynor Ratio Relative To Other Indicators
The chart below plots Treynor Ratio against Maximum Drawdown for Butterfly Network and its peers. Each point represents one equity — position along the horizontal axis shows Treynor Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Butterfly Network's Maximum Drawdown of
69.49 runs about
455.96 times its Treynor Ratio of
0.15 . This indicates Maximum Drawdown substantially exceeds Treynor Ratio for Butterfly Network.
Methodology, Assumptions & Data Sources
Butterfly Network's Treynor Ratio currently stands at 0.1524. This Treynor Ratio reading for Butterfly Network results from applying the indicator's calculation rules to price and volume data over the selected window. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. Butterfly Network operates in the health care sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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