Sharpe ratio

Significado en lenguaje sencillo

The Sharpe ratio divides excess return by return volatility using a stated period and risk-free-rate convention.

Por qué es útil

Sharpe ratio is useful as descriptive evidence when it is compared on the same definition, source, period, unit and exact listing. It is one input to research, not a verdict.

Dónde aparece en XMarketRadar

Look for Sharpe ratio in Portfolio Analytics, Risk Cockpit, holding analysis, performance views and relevant screeners.

Cómo se calcula o se obtiene

Subtract the stated risk-free return from portfolio return and divide by return volatility for a matched frequency; annualise only under the disclosed convention.

Entradas, período y unidad

Read the disclosed inputs or source, observation period, bar interval, unit, native currency and scale. A value without its source and as-of context is incomplete; unlike units must not be combined.

Ejemplo práctico

Illustrative only: With 12% return, 4% risk-free rate and 16% volatility under matched annual conventions, Sharpe ratio is (12−4)/16 = 0.50.

Qué significan alto y bajo

A higher or lower Sharpe ratio value is descriptive, not automatically good or bad. Meaning depends on the instrument, comparison period, method and related evidence.

Positivo, negativo y cero real

Positive and negative Sharpe ratio values retain the definition shown here. A genuine reported or computed zero is displayed as 0 and is not the same as missing evidence.

Cuándo no está disponible

Unavailable (—) means Sharpe ratio is absent, unsupported, stale under the screen's rules or not computable from verified inputs. It must never be converted to zero or a neutral signal.

Limitaciones y errores comunes

Historical Sharpe is sensitive to frequency, sample, currency and the risk-free rate. For mutual funds, XMarketRadar suppresses the ratio when annualised volatility is below 0.5%, and suppresses NAV-derived returns for IDCW/dividend and segregated/side-pocket series rather than publishing misleading values.

Diferencias según el mercado

The concept is used across all supported markets, but currency, price scale, session calendar, source field and regulatory definition can differ. XMarketRadar preserves the exact exchange context.

Términos relacionados

Use the related-term links on this page to compare Sharpe ratio with neighbouring definitions while retaining each term's distinct source, unit and limitations.

Siguientes pasos sugeridos

Open the related Portfolio and risk terms below, then follow the matching Help Centre task guide and inspect Sharpe ratio on an exact exchange listing. Confirm source, as-of time, units and unavailable reason before using it in research.

Solo información educativa; no es asesoramiento ni un servicio de órdenes.

This Sharpe ratio tutorial is educational and descriptive. It is not investment advice, a price prediction, a recommendation, or an instruction to buy, sell, rebalance or place an order.