Investing & Markets2 options compared

Treynor Ratio Calculator

Calculates systematic risk-adjusted returns using the Treynor Ratio formula, comparing actual returns to expected returns based on CAPM and Jensen's alpha for cross-reference. Helps users in finance and investment evaluate the performance of an asset or portfolio by measuring its return relative to its beta (systematic risk). Ideal for investors looking to assess how well a particular investment...

General investment calculatorsportfolio performancesystematic riskTreynor ratiobeta-adjusted return
Editors’ Top PickBased on community votes
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Treynor Ratio Calculator options compared

ToolBest forStrengthsLimitations
Omni Calculator
omnicalculator.com
Quick portfolio risk-adjusted returns
  • Simple input of portfolio values and beta
  • Provides a single standardized Treynor ratio measure
  • Fewer unit options
  • No CAPM or Jensen's alpha cross-reference
Financial Toolset
financialtoolset.com
Detailed risk-adjusted analysis
  • Includes CAPM expected return and Jensen's alpha cross-reference
  • Shows how much return earned per unit of market risk
  • Requires market return and risk-free rate inputs
  • More variables to enter

Buyer's guide

How to choose a treynor ratio calculator

When picking a Treynor Ratio calculator, the key decision is whether you have historical portfolio values or full market data. If you only know your portfolio's beginning and ending values and its beta, Omni Calculator will give you the ratio quickly. If you have expected returns, a risk-free rate, and the broader market return and want to see how the Treynor ratio compares to CAPM expected return and Jensen's alpha, Financial Toolset is the better fit.

Questions

Treynor Ratio Calculator FAQ

What is the Treynor ratio and what does it measure?
The Treynor ratio measures how much return an investment generates per unit of systematic risk, using beta to assess risk-adjusted performance. It helps investors understand if an asset compensates them adequately for the risk taken.
Do I need the risk-free rate to use a Treynor ratio calculator?
It depends on the tool. Omni Calculator only requires portfolio values and beta, while Financial Toolset requires the risk-free rate along with expected return and beta for full calculations.
Can I compare two funds using the Treynor ratio?
Yes. The Treynor ratio is designed for head-to-head comparison of investments based on their efficiency relative to systematic risk, so a higher ratio indicates better risk-adjusted returns.
What is the difference between Treynor ratio and Sharpe ratio?
Treynor ratio uses beta to measure systematic risk only, while Sharpe ratio uses total standard deviation to measure total risk. Treynor is better for diversified portfolios, Sharpe for any investment.
Is a higher Treynor ratio always better?
Generally, yes. A higher Treynor ratio means more return per unit of systematic risk taken, indicating a more efficient investment relative to its market risk.
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