Sharpe, Sortino, and Treynor Ratios

Sharpe, Sortino, and Treynor pages cover the standard ratios used to compare excess return with volatility, downside risk, or beta exposure.

These terms are central to fund and strategy comparison.

In this section

• Sharpe Ratio
  Risk-adjusted performance measure comparing excess return with total volatility across portfolios or strategies.
• Sortino Ratio: Measuring Return per Unit of Downside Risk
  Understand the Sortino Ratio, how it differs from the Sharpe Ratio, and why investors use it when they care more about harmful volatility than upside surprises.
• Treynor Ratio: Definition, Significance, and Calculation
  A detailed look into the Treynor Ratio, a key performance metric that assesses the risk-adjusted returns of a portfolio, covering its definition, significance, formula, and examples.