Boost Your Investment Performance: Calculate Sortino Ratio with Our Free Excel Tool
Efficiently calculate the Sortino Ratio with our editable Free Excel template. Improve your investment decisions with this SEO-friendly tool that analyzes risk-adjusted returns. Easily customizable and compact, this calculator is a must-have for financial professionals. Download now and optimize your portfolio performance!
You can download this file and use it as a template to calculate the Sortino ratio of any investment, portfolio, or strategy.
The Sortino ratio measures the risk-adjusted return of an investment, portfolio, or strategy.
Similar to Sharpe ratio but penalizes only those returns falling below a user-specified target or required rate of return (in our Excel Rf= expected return), while the Sharpe ratio penalizes both upside and downside volatility equally.
The Sortino ratio is used as a way to compare the risk-adjusted performance of investments with differing risk and return profiles.
A negative Sortino ratio means that the risk-free rate (expected return) is higher than the portfolio's return. This value does not convey any meaningful information.
A Sortino ratio between 0 and 1.0 is considered sub-optimal.
A Sortino ratio greater than 1.0 is considered acceptable.
A Sortino ratio higher than 2.0 is considered very good.
A Sortino ratio of 3.0 or higher is considered excellent.
Some further reading material
I collected for you some useful material if you want to read more about this topic:
Register to tempsee to download the files quickly (it’s free!). If you are interested to sell your own files and do what I am doing, you can become a Creator. Also this is free! Check out why this is a great source for passive income.
Reviews (0)
Customer reviews
0.0 out of 5