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sortino ratio

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Financial Dictionary

Sortino Ratio

Similar to the Sharpe ratio, except it uses downside deviation for the denominator, whereas Sharpe uses standard deviation.

Investopedia Commentary

This ratio was developed to differentiate between good and bad volatility in the Sharpe ratio.

Related Links

The Uses And Limits Of Volatility
Understanding Volatility Measurements

See also: Sharpe Ratio, Standard Deviation, Volatility

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