I calculated the Sharpe Ratio and Treynor Ratio for a list of individual stocks the following way. Am I doing it right? Does calcuting these ratios on individual stocks work or it only works for portfolios?
PRICE TODAY: 100
PRICE 3 YEARS AGO: 20
CAGR (100/20) ^ (1/(3)] - 1
Standard deviation: stdv( 5 year daily return) * sqrt(252).
(3 year CAGR - 10yr treasury) ÷ annual S.D = Sharpe
Treynor: using the CAGR (3 yr) above, I divided by Beta using 5 year daily returns
Am I doing it right or not?