Sortino Ratio
Description
Sortino Ratio is a measure of risk-adjusted return, similar to Sharpe Ratio. Developed by Frank Sortino it's used to compare the expected return of an investment to the risk of downward deviation from the expected return, downside risk.
Sortino Ratio is calculated by dividing the expected return of the investment, excess return, by the standard deviation of the investment's negative returns, which is a measure of its downside risk.
A higher Sortino Ratio indicates a higher risk-adjusted return, while a lower Sortino Ratio indicates a lower risk-adjusted return.
Sortino Ratio is used to compare the expected returns of different cryptos and determine which ones offer the best risk-adjusted returns.
Use the Sortino Ratio in combination with our other tools to make informed decisions.
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