Comparison of Risk vs. Return Metrics

What are Risk vs. Return Metrics?

Risk vs. Return Metrics are analytical tools used in finance to assess the relationship between the level of risk taken by an investment and the potential return generated from that investment.

Alpha vs. Treynor ratio

	Alpha	Treynor ratio
description	measure of a portfolio’s performance that is relative to a benchmark index. It is used to evaluate the performance of an investment manager, and it represents the return on an investment portfolio over the return that a benchmark index has achieved.	performance measurement used in investing to evaluate how well an investment compensates investors for the risk they take, relative to the market. It measures the return of a portfolio or asset beyond the risk-free rate, per unit of systematic risk (beta).
numerator	excess return (above the risk-free rate)	excess return (above the risk-free rate)
denominator		beta
formula
SPY range