Root Risk Adjusted Performance
| ROOT Stock | | | USD 55.05 0.15 0.27% |
Risk-Adjusted Performance (RAP) measures the return an equity would have generated if it carried the same total risk (standard deviation) as the market. Derived from the Sharpe Ratio, RAP is expressed in percentage terms, making direct comparison across assets with different volatility profiles straightforward. Below is Root's current Risk Adjusted Performance with peer comparisons and related risk metrics.
Current Risk Adjusted Performance Value
Root's Risk Adjusted Performance of 0.0111 reflects positive but modest risk-adjusted return. Root has produced a positive return relative to risk, though the margin is limited.
RAP | = | (ER[a] - RFR) * STD[b])/STD[b]RFR |
| = | 0.0111 | |
Risk Adjusted Performance Peers Comparison
Root falls below the 0.02 peer average for Risk Adjusted Performance. Universal Insurance Holdings leads at 0.1602 while Horizon Technology Finance registers the lowest at -0.0915. Root's risk-adjusted return trails the peer average, indicating less efficient compensation for the risk incurred.
Risk Adjusted Performance Relative To Other Indicators
The chart below plots Risk Adjusted Performance against Maximum Drawdown for Root and its peers. Each point represents one equity — position along the horizontal axis shows 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.
Comparing Risk Adjusted Performance (
0.01 ) to Maximum Drawdown (
17.89 ) for Root yields a
1,612 multiple. This indicates Maximum Drawdown substantially exceeds Risk Adjusted Performance for Root.
Methodology, Assumptions & Data Sources
Root's Risk Adjusted Performance currently stands at 0.0111. Root's Risk Adjusted Performance is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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