Named after its inventor, Nobel Prize winner William F. Sharpe, the Sharpe ratio addresses total returns relative to the amount of risk you incurred with your positions. In other words ...

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility ...

The Sharpe ratio takes these factors and spits out a number that can tell you how your investments are doing relative to the risk. Let's say you have an exchange-traded fund (ETF) with a 5-year ...

Combining the slope and standard deviation offers a clear picture of growth relative to risk. To calculate the K-ratio, divide the slope of the equity curve by the standard deviation of returns.