NLIGHT Treynor Ratio
| LASR Stock | | | USD 71.29 4.34 6.48% |
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 NLIGHT's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
NLIGHT has a Treynor Ratio of 0.2989, indicating positive return per unit of systematic risk. NLIGHT has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.2989 | |
| ER[a] | = | Expected return on investing in NLIGHT |
| BETA | = | Beta coefficient between NLIGHT and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
NLIGHT's Treynor Ratio of 0.2989 falls below the 0.69 peer average. Values range from -0.3336 (NCR Voyix) to 2.1 (Applied Opt), with wide dispersion across the group. NLIGHT 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 NLIGHT 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.
NLIGHT's Treynor Ratio reads
0.30 while Maximum Drawdown reads
36.51 , a
122.15 ratio between the two. This indicates Maximum Drawdown substantially exceeds Treynor Ratio for NLIGHT.
Methodology, Assumptions & Data Sources
NLIGHT's Treynor Ratio currently stands at 0.2989. This Treynor Ratio reading for NLIGHT 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. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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