Fidelity Covington Treynor Ratio
| FELV ETF | | | 38.48 0.35 0.92% |
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
Fidelity Covington's Treynor Ratio of 0.1221 reflects 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 |
| = | 0.1221 | |
| 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
Fidelity Covington's Treynor Ratio of 0.1221 falls above the 0.04 peer average. Values range from -0.2827 (Fidelity Advisor Large) to 0.1979 (Fidelity Enhanced Small), with wide dispersion across the group. 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.
Fidelity Covington produces
24.90 in Maximum Drawdown for each unit of Treynor Ratio, with respective readings of
3.04 and
0.12 . This indicates Maximum Drawdown substantially exceeds Treynor Ratio for Fidelity Covington.
Methodology, Assumptions & Data Sources
The current Treynor Ratio for Fidelity Covington is 0.1221. The Treynor Ratio for Fidelity Covington is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. The output reflects the selected calculation window — changing the horizon will produce different readings. This ETF metric is provided for analytical reference.
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