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Tag: Downside Deviation

An investor on a boat navigating rough waters, using the Sortino ratio compass to avoid negative risks and maintain positive returns.

Understanding the Sortino Ratio: A Better Way to Measure Investment Performance

July 10, 2025 FinanceFacts101 Finance Policy

Introduction to the Sortino Ratio The Sortino ratio is an essential metric used by investors and portfolio managers to assess investment performance that goes beyond traditional measures such as the Sharpe ratio. This ratio focuses on the specific risk of adverse returns, addressing a key concern for investors—minimizing losses while

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