FT Cboe Treynor Ratio
| DFEB ETF | | | USD 49.91 -0.05 -0.10% |
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 FT Cboe's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
FT Cboe carries a Treynor Ratio of 0.1265, consistent with positive return per unit of systematic risk. FT Cboe has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.1265 | |
| ER[a] | = | Expected return on investing in FT Cboe |
| BETA | = | Beta coefficient between FT Cboe and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Among sector peers, FT Cboe's Treynor Ratio of 0.1265 is below the 0.14 group average. The range runs from 0.1032 (First Trust Exchange Traded) to 0.3096 (First Trust Exchange Traded). FT Cboe 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 FT Cboe 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.
FT Cboe's Maximum Drawdown of
1.84 runs about
14.58 times its Treynor Ratio of
0.13 . This indicates Maximum Drawdown substantially exceeds Treynor Ratio for FT Cboe.
Methodology, Assumptions & Data Sources
The current Treynor Ratio for FT Cboe is 0.1265. The Treynor Ratio for FT Cboe is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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