Every investment carries with it some level of risk and reward. Unfortunately, these are unknown variables. They change over time and in the face of market factors, and there’s no way of knowing ...

Existing Trading Platforms Reports Sharpe Ratio and Sortino Ratio Incorrectly for Day Trading Strategy Historical Performance. Understand the Reason Can Help Fix the Issue. There is a Simple Solution.

Most investment professionals are familiar with the formula known as the Sharpe Ratio. The calculation is so omnipresent in financial circles that it even features as a sales objection on the ...

As a high-frequency trader, my job was to create algorithms that would trade billions of dollars in stocks at microsecond speeds, capitalizing on tiny mathematical edges that would capture just ...

Many individual investors aren't familiar with Sharpe ratios. However, the Sharpe ratio is a useful and intuitive tool to measure portfolio performance. It's used extensively to judge the performance ...

An investigation of the empirical relationship between the Sharpe ratio and the investment horizon for portfolios of small stocks, larger stocks, and bonds shows that the Sharpe ratio first increases ...

Mutual funds that are likely to offer healthy returns along with a lower level of risk are popular choices. But to identify funds that can offer such features, one should find out a way of measuring a ...

You’ve probably heard investing professionals talk about risk-adjusted returns. This is a way of measuring the performance of an investment that factors in risk—specifically, the extra risk required ...

The Sharpe ratio compares an investment's excess return over a benchmark to the standard deviation of returns. The higher the Sharpe ratio, the better the investment's historical risk-adjusted ...