Processa Pharmaceuticals Treynor Ratio
| PCSA Stock | | | USD 2.66 -0.02 -0.75% |
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 Processa Pharmaceuticals's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
The current Treynor Ratio of 0.4225 places Processa Pharmaceuticals at positive return per unit of systematic risk. Processa Pharmaceuticals has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.4225 | |
| ER[a] | = | Expected return on investing in Processa Pharmaceuticals |
| BETA | = | Beta coefficient between Processa Pharmaceuticals and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Relative to peers, Processa Pharmaceuticals's Treynor Ratio is above the group average of 0.32. Peer readings range from -1.8371 (Athira Pharma) to 4.53 (Allarity Therapeutics), reflecting wide dispersion across the sector. Processa Pharmaceuticals 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 Processa Pharmaceuticals 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.
Processa Pharmaceuticals's Maximum Drawdown of
37.67 runs about
89.16 times its Treynor Ratio of
0.42 . This indicates Maximum Drawdown substantially exceeds Treynor Ratio for Processa Pharmaceuticals.
Methodology, Assumptions & Data Sources
The current Treynor Ratio for Processa Pharmaceuticals is 0.4225. This Treynor Ratio reading for Processa Pharmaceuticals results from applying the indicator's calculation rules to price and volume data over the selected window. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
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