Calculate risk-adjusted returns using Sharpe ratio.
Calculate risk-adjusted returns using the Sharpe ratio
Expected annual return of the portfolio
Treasury bond or risk-free investment rate
Portfolio volatility (standard deviation of returns)
Period for which returns are calculated
Sharpe Ratio
Excess Return
Return above risk-free rate
Risk per Unit Return
Standard deviation per 1% return
| Sharpe Ratio Range | Rating | Description | Your Portfolio |
|---|---|---|---|
| < 0 | Poor | Below risk-free return | |
| 0 - 0.5 | Below Average | Barely compensates for risk | |
| 0.5 - 1.0 | Good | Acceptable risk-adjusted return | |
| 1.0 - 2.0 | Very Good | Good risk-adjusted performance | |
| > 2.0 | Excellent | Outstanding performance |
The expected or historical return of your investment portfolio over a specific period.
The return of a risk-free investment, typically government treasury bonds.
A measure of the portfolio's volatility or risk, showing how much returns vary.
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