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Sortino Ratio In A Nutshell

Taking a look at the Sortino ratio, it is a close cousin of the Sharpe ratio. If you need more information on the Sharpe ratio, check out the equities center on Macroaxix. This ratio has the ability to pick apart the potential negative volatility from the general volatility of the market.

When you have a portfolio, it is important to measure the amount of risk that is included in your portfolio. This ratio is beneficial if you are trying to evaluate the amount of negative risk may be in an investment. What this ratio also uses is standard deviation to the downside.

If there is one thing we’ve all learned through financial education is there are many different kinds of ratios out there, telling us different stories about the data we are looking at. The Sortino ratio is no different.

Closer Look at Sortino Ratio

With each ratio you have to understand what factors go into it and what makes it tick because you may find it is not addressing the appropriate parts of your investing or trading.

Once you find the end number, you want the ratio to be as high as possible, as this indicates that the returns are being earned with more efficiency. You may see higher returns with one fund, but the effenciency with which they are being earned may create more risk.

Investing is a balancing act between risk and return, and once you find your sweet spot you can begin to optimize other areas of your investing portfolio. Be sure to test this and know this ratio inside and out before implementing this into your current setup.

Use Investing Themes to Complement your positions

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Electronics Thematic Idea Now

Electronics
Electronics Theme
Companies manufacturing electronic appliances and goods. The Electronics theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Electronics Theme or any other thematic opportunities.
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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.

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