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 Opportunities
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 Bollinger Bands Now
Bollinger BandsUse Bollinger Bands indicator to analyze target price for a given investing horizon |
| All Next | Launch Module |
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |