Watsco Risk Adjusted Performance
| WSO Stock | | | USD 432.06 11.38 2.71% |
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 Watsco's current Risk Adjusted Performance with peer comparisons and related risk metrics.
Current Risk Adjusted Performance Value
Watsco has a Risk Adjusted Performance of 0.0464, indicating positive but modest risk-adjusted return. Watsco has produced a positive return relative to risk, though the margin is limited.
RAP | = | (ER[a] - RFR) * STD[b])/STD[b]RFR |
| = | 0.0464 | |
Risk Adjusted Performance Peers Comparison
Watsco falls above the -0.04 peer average for Risk Adjusted Performance. Applied Industrial Technologies leads at 0.1431 while Allegion PLC registers the lowest at -0.1997. Watsco's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Risk Adjusted Performance Relative To Other Indicators
The chart below plots Risk Adjusted Performance against Maximum Drawdown for Watsco 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.
Watsco shows nearly
196.14 of Maximum Drawdown per unit of Risk Adjusted Performance (
0.05 versus
9.10 ). This indicates Maximum Drawdown substantially exceeds Risk Adjusted Performance for Watsco.
Methodology, Assumptions & Data Sources
Watsco has a current Risk Adjusted Performance reading of 0.0464. This Risk Adjusted Performance reading for Watsco results from applying the indicator's calculation rules to price and volume data over the selected window. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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