Silicon Motion Market Risk Adjusted Performance
| SIMO Stock | | | USD 242.71 -1.74 -0.71% |
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 Silicon Motion's current Market Risk Adjusted Performance with peer comparisons and related risk metrics.
Current Market Risk Adjusted Performance Value
The current Market Risk Adjusted Performance of 1.83 places Silicon Motion at strong risk-adjusted return — return exceeds the risk taken. Silicon Motion has delivered outsized return relative to total volatility, which is uncommon and indicates efficient risk compensation.
MRAP | = | ER[a] + (1/BETA - 1) | X | ER[a] - RFR) |
| = | 1.83 | |
| ER[a] | = | Expected return on investing in Silicon Motion |
| 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
The peer group averages -0.15 for Market Risk Adjusted Performance, with Silicon Motion at 1.83 falling above that level. Readings span -2.258 (SPS Commerce) to 0.6213 (Axcelis Technologies). Silicon Motion's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Market Risk Adjusted Performance Relative To Other Indicators
The chart below plots Market Risk Adjusted Performance against Maximum Drawdown for Silicon Motion 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.
Silicon Motion shows nearly
26.76 of Maximum Drawdown per unit of Market Risk Adjusted Performance (
1.83 versus
48.93 ). This indicates Maximum Drawdown substantially exceeds Market Risk Adjusted Performance for Silicon Motion.
Methodology, Assumptions & Data Sources
Silicon Motion's Market Risk Adjusted Performance currently stands at 1.83. The Market Risk Adjusted Performance for Silicon Motion is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. The output reflects the selected calculation window — changing the horizon will produce different readings. This stock metric is provided for analytical reference.
Other Technical Indicators