Home Depot Treynor Ratio

The Home Depot Inc has current Treynor Ratio of 0.2981. The Treynor is reward-to-volatility ratio that expresses the excess return to the beta of the equity or portfolio. It is similar to the Sharpe ratio, but instead of using volatility in the denominator, it uses the beta of equity or portfolio. Therefore the Treynor Ratio is calculated as [(Portfolio return - Risk free return)/Beta].
Home Depot 
Treynor Ratio 
 = 
ER[a] - RFR 
BETA 
 = 
0.2981
ER[a] =   Expected return on investing in Home Depot
BETA =   Beta coefficient between Home Depot and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Treynor Ratio Comparison

The Home Depot Inc is rated below average in treynor ratio category among related companies. It is rated below average in maximum drawdown category among related companies reporting about  8.13  of Maximum Drawdown per Treynor Ratio. The ratio of Maximum Drawdown to Treynor Ratio for The Home Depot Inc is roughly  8.13 
This ratio was developed by Jack Treynor to measure how well an investment has compensated its investors given its level of risk. The Treynor ratio relies on beta, which measures an investment sensitivity to market movements, to gauge risk. The premise underlying the Treynor ratio is that systematic risk--the kind of risk that is inherent to the entire market (represented by beta)--should be penalized because it cannot be diversified away.
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The Home Depot, Inc. operates as a home improvement retailer. more
NameThe Home Depot Inc
InstrumentUSA Stock
RegionNorth America
ExchangeNew York Stock Exchange
CIK Number00354950.0
ISINUS4370761029
CUSIP437076102
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
CurrencyUSD - US Dollar