Free online Treynor Ratio Calculator. Measure excess return per unit of systematic risk. Input portfolio return, risk-free rate, and Beta to calculate. No registration required.
Treynor Ratio = (Portfolio Return - Risk-Free Rate) / Beta. Measures excess return per unit of systematic risk.
Sharpe uses standard deviation (total risk), Treynor uses Beta (systematic risk). Treynor is better for well-diversified portfolios.
Higher is better. Positive means outperforming risk-free rate. Compare against benchmark index.
Beta measures volatility relative to the market. Beta>1 = more volatile, Beta<1 = less volatile. Available from financial data platforms.