Скачать или смотреть Understanding the Sortino Ratio: A Powerful Tool for Evaluating Risk-Adjusted Returns

As an investor, it's essential to assess not only the returns on your investments but also the level of risk involved. This is where the Sortino Ratio comes into play. In this educational video, we delve into the concept of the Sortino Ratio and its significance in evaluating risk-adjusted returns.

The Sortino Ratio is a financial metric that measures an investment's performance relative to its downside risk, particularly the risk of below-average returns. Unlike traditional risk-adjusted ratios like the Sharpe Ratio, the Sortino Ratio only considers negative volatility, making it more focused on preserving capital in adverse market conditions.

In this video, we will walk you through the formula for calculating the Sortino Ratio and explain how to interpret its value. A higher Sortino Ratio indicates better risk-adjusted returns, as it implies that the investment generated higher returns while experiencing less downside risk.

We will also explore the practical applications of the Sortino Ratio and how it can aid investors in making better-informed decisions. By using the Sortino Ratio, you can better gauge an investment's ability to withstand market downturns and protect your capital during turbulent times.

Whether you are a seasoned investor or new to the world of finance, understanding the Sortino Ratio will empower you to make more astute investment choices and build a resilient portfolio that aligns with your risk tolerance and financial objectives.