Stem Treynor Ratio
| STEM Stock | | | USD 10.58 0.45 4.44% |
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 Stem's current Treynor Ratio with peer comparisons and related risk metrics.
Current Treynor Ratio Value
Stem carries a Treynor Ratio of
-0.62, consistent with negative return per unit of systematic risk. Stem has not been compensated for the market risk it carries — systematic exposure has produced negative returns over the measured period.
Treynor Ratio | = | ER[a] - RFRBETA |
| = | -0.62 | |
| ER[a] | = | Expected return on investing in Stem |
| BETA | = | Beta coefficient between Stem and the market |
| RFR | = | Risk Free Rate of return. Typically T-Bill Rate |
Treynor Ratio Peers Comparison
Among sector peers, Stem's Treynor Ratio of -0.6221 is below the 0.11 group average. The range runs from -2.4252 (X3 Holdings Co) to 4.53 (Teads BV). Stem 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 Stem 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.
Compare Stem to PeersMethodology, Assumptions & Data Sources
The current Treynor Ratio for Stem is -0.62. Treynor Ratio for Stem is derived by applying a defined formula to historical price observations, producing a time-series of comparable readings. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
Other Technical Indicators