Sharpe Ratio


Sharpe Ratio measures risk-adjusted return. Developed by economist William Sharpe it is used to compare the expected return of an investment to the risk that it carries.

Sharpe Ratio is calculated by dividing the expected return of the investment, excess return, by the standard deviation of the investment's returns, which is a measure of its volatility.

A higher Sharpe Ratio indicates a higher risk-adjusted return, while a lower Sharpe Ratio indicates a lower risk-adjusted return.

Sharpe Ratio is used to compare the expected returns of different cryptos and determine which ones offer the best risk-adjusted returns.

Use the Sharpe Ratio in combination with our other tools and to make informed decisions.

End Point


Use Cases:

Last updated