Hovnanian Enterprises Market Risk Adjusted Performance
| HOV Stock | | | USD 117.13 -2.74 -2.29% |
Market Risk-Adjusted Performance (MRAP) measures return relative to systematic risk (beta) rather than total risk (standard deviation). This isolates the return earned per unit of market exposure, filtering out idiosyncratic volatility that can be diversified away. Below is Hovnanian Enterprises's current Market Risk Adjusted Performance with peer comparisons and related risk metrics.
Current Market Risk Adjusted Performance Value
With Market Risk Adjusted Performance at
-0.02, Hovnanian Enterprises shows slightly negative risk-adjusted return. Hovnanian Enterprises's return has marginally failed to compensate for the volatility experienced.
MRAP | = | ER[a] + (1/BETA - 1) | X | ER[a] - RFR) |
| = | -0.02 | |
| ER[a] | = | Expected return on investing in Hovnanian Enterprises |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
| BETA | = | Beta of the asset with market or selected benchmark. |
Market Risk Adjusted Performance Peers Comparison
The peer group averages -0.15 for Market Risk Adjusted Performance, with Hovnanian Enterprises at -0.0235 falling above that level. Readings span -0.6088 (Cango Inc) to 0.2198 (Oxford Industries). Hovnanian Enterprises's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Market Risk Adjusted Performance Relative To Other Indicators
The chart below plots Market Risk Adjusted Performance against Maximum Drawdown for Hovnanian Enterprises and its peers. Each point represents one equity — position along the horizontal axis shows Market Risk Adjusted Performance 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.
Compare Hovnanian Enterprises to PeersMethodology, Assumptions & Data Sources
Hovnanian Enterprises has a current Market Risk Adjusted Performance reading of -0.02. This Market Risk Adjusted Performance reading for Hovnanian Enterprises results from applying the indicator's calculation rules to price and volume data over the selected window. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Hovnanian Enterprises operates in the consumer discretionary 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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