Fidelity Covington Treynor Ratio
| FELC ETF | | | 41.00 0.54 1.33% |
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 Fidelity Covington's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
A Treynor Ratio of 0.1259 for Fidelity Covington signals positive return per unit of systematic risk. Fidelity Covington has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.1259 | |
| ER[a] | = | Expected return on investing in Fidelity Covington |
| BETA | = | Beta coefficient between Fidelity Covington and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
The peer group averages 0.12 for Treynor Ratio, with Fidelity Covington at 0.1259 falling above that level. Readings span 0.0637 (Fidelity Covington Trust) to 0.1585 (First Trust RBA). Fidelity Covington 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 Fidelity Covington 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
0.13 and Maximum Drawdown at
3.66 , Fidelity Covington shows a
29.06 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Treynor Ratio for Fidelity Covington.
Methodology, Assumptions & Data Sources
The current Treynor Ratio for Fidelity Covington is 0.1259. The Treynor Ratio for Fidelity Covington applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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