Unknown Indicator
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.
Other Indicators
All Technical Analysis
Explore Investing Ideas
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.Did you try this?
Run Instant Ratings Now
Instant RatingsDetermine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |
All Next | Launch Module |
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |