FirstEnergy Treynor Ratio
| FE Stock | | | USD 49.41 -0.21 -0.42% |
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 FirstEnergy's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
The Treynor Ratio of 2.15 for FirstEnergy indicates strong return per unit of systematic risk. FirstEnergy has been well compensated for the market risk it carries.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 2.15 | |
| ER[a] | = | Expected return on investing in FirstEnergy |
| BETA | = | Beta coefficient between FirstEnergy and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
FirstEnergy falls above the -1.45 peer average for Treynor Ratio. Entergy leads at 10.97 while American Electric Power registers the lowest at -12.9538. FirstEnergy has earned more 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 FirstEnergy 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
2.15 and Maximum Drawdown at
4.89 , FirstEnergy shows a
2.27 -to-one ratio between these indicators. This indicates Maximum Drawdown is significantly higher than Treynor Ratio for FirstEnergy.
Methodology, Assumptions & Data Sources
The current Treynor Ratio for FirstEnergy is 2.15. FirstEnergy'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. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. FirstEnergy operates in the utilities 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.
Other Technical Indicators