This compares a strategy’s return to its risk (volatility). A higher Sharpe ratio is desirable for investors as it implies a higher risk-adjusted return.
Expressed as a percentage, this metric gives the investor an indication of the short term momentum of the strategy.
Strategy
Value
Technical
Quality
Dividend
Health
Persona
Sharpe Ratio
Definition
This compares a strategy’s return to its risk (volatility). A higher Sharpe ratio is desirable for investors as it implies a higher risk-adjusted return.
Expressed as a percentage, this metric gives the investor an indication of the short term momentum of the strategy.
Strategy
Value
Technical
Quality
Dividend
Health
Persona