Piedmont Office Treynor Ratio
| PDM Stock | | | USD 8.49 0.04 0.47% |
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 Piedmont Office's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
The current Treynor Ratio of 0.0252 places Piedmont Office at positive return per unit of systematic risk. Piedmont Office has been compensated for its market exposure, though the margin is modest.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.0252 | |
| ER[a] | = | Expected return on investing in Piedmont Office |
| BETA | = | Beta coefficient between Piedmont Office and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Relative to peers, Piedmont Office's Treynor Ratio is above the group average of -0.04. Peer readings range from -2.8322 (Two Harbors Investments) to 2.24 (Kennedy Wilson Holdings), reflecting tight clustering across the sector. Piedmont Office 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 Piedmont Office 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.
Piedmont Office shows nearly
422.37 of Maximum Drawdown per unit of Treynor Ratio (
0.03 versus
10.64 ). This indicates Maximum Drawdown substantially exceeds Treynor Ratio for Piedmont Office.
Methodology, Assumptions & Data Sources
Piedmont Office has a current Treynor Ratio reading of 0.0252. Treynor Ratio for Piedmont Office is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. Piedmont Office operates in the real estate 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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