Diodes Incorporated Treynor Ratio
| DIOD Stock | | | USD 111.41 -1.18 -1.05% |
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 Diodes Incorporated's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
Diodes Incorporated registers a Treynor Ratio of 0.4861, reflecting positive return per unit of systematic risk. Diodes Incorporated has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.4861 | |
| ER[a] | = | Expected return on investing in Diodes Incorporated |
| BETA | = | Beta coefficient between Diodes Incorporated and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Among sector peers, Diodes Incorporated's Treynor Ratio of 0.4861 is below the 0.51 group average. The range runs from -0.2065 (Daqo New Energy) to 2.25 (Applied Opt). Diodes Incorporated 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 Diodes Incorporated 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.
With Treynor Ratio at
0.49 and Maximum Drawdown at
34.01 , Diodes Incorporated shows a
69.96 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Treynor Ratio for Diodes Incorporated.
Methodology, Assumptions & Data Sources
The current Treynor Ratio for Diodes Incorporated is 0.4861. Diodes Incorporated's Treynor Ratio is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Diodes Incorporated operates in the information technology sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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