Ringcentral Treynor Ratio
| RNG Stock | | | USD 45.72 -2.03 -4.25% |
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 Ringcentral's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
Ringcentral's Treynor Ratio of 0.9698 reflects strong return per unit of systematic risk. Ringcentral has been well compensated for the market risk it carries.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | 0.9698 | |
| ER[a] | = | Expected return on investing in Ringcentral |
| BETA | = | Beta coefficient between Ringcentral and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Ringcentral's Treynor Ratio of 0.9698 falls below the 0.97 peer average. Values range from -0.1097 (Alarm Holdings) to 5.1 (Sapiens International), with wide dispersion across the group. Ringcentral 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 Ringcentral 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.
Ringcentral records a Treynor Ratio of
0.97 and a Maximum Drawdown of
46.84 , yielding roughly
48.30 units of Maximum Drawdown per Treynor Ratio. This indicates Maximum Drawdown substantially exceeds Treynor Ratio for Ringcentral.
Methodology, Assumptions & Data Sources
Ringcentral's Treynor Ratio currently stands at 0.9698. The Treynor Ratio for Ringcentral applies a standardized calculation to daily closing prices and, where applicable, volume data across the selected period. All inputs are based on exchange-reported closing prices, with adjustments for stock splits, dividends, and other corporate actions. The calculation assumes continuous price data across the selected period. All readings are presented as reference data.
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