AlphaAnalyst Open AlphaAnalyst

What are the Sharpe and Sortino ratios?

The Sharpe ratio shows how much extra return a fund earned for each unit of risk taken, above a risk-free rate (we use 6.5%). Higher is better.

The Sortino ratio is similar but counts only the harmful, downward moves. It is useful for comparing funds that rise sharply but fall gently.

Updated:

Read in: हिंदी · मराठी · ಕನ್ನಡ · తెలుగు

More in this topic: Returns and risk explained

All topics →