Prologis Market Risk Adjusted Performance
| PLD Stock | | | USD 142.10 -0.24 -0.17% |
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 Prologis's current Market Risk Adjusted Performance with peer comparisons and related risk metrics.
Current Market Risk Adjusted Performance Value
At 0.1913, Prologis's Market Risk Adjusted Performance indicates positive but modest risk-adjusted return. Prologis has produced a positive return relative to risk, though the margin is limited.
MRAP | = | ER[a] + (1/BETA - 1) | X | ER[a] - RFR) |
| = | 0.1913 | |
| ER[a] | = | Expected return on investing in Prologis |
| 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
Prologis falls below the 0.49 peer average for Market Risk Adjusted Performance. Equinix leads at 1.85 while Extra Space Storage registers the lowest at -0.0098. Prologis's risk-adjusted return trails the peer average, indicating less efficient compensation for the risk incurred.
Market Risk Adjusted Performance Relative To Other Indicators
The chart below plots Market Risk Adjusted Performance against Maximum Drawdown for Prologis 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.
With Market Risk Adjusted Performance at
0.19 and Maximum Drawdown at
5.29 , Prologis shows a
27.65 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Market Risk Adjusted Performance for Prologis.
Methodology, Assumptions & Data Sources
The current Market Risk Adjusted Performance for Prologis is 0.1913. The Market Risk Adjusted Performance for Prologis is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Prologis operates in the real estate sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Values are specific to the selected time horizon and may differ across measurement periods. This indicator does not constitute investment advice.
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