Pain Ratio Calculator

✖Effective Return is a measure that accurately calculates the actual amount of return gained on an investment, taking into account the effects of compounding over a certain period.ⓘ Effective Return [ER]			+10% -10%
✖Pain Index is a tool for advisors to help them define and measure risk in terms investors can feel and relate to how much money they might lose.ⓘ Pain Index [PI]			+10% -10%

✖Pain Ratio provides a better assessment for understanding the amount of return per unit of risk, measured in terms of capital preservation.ⓘ Pain Ratio [PR]

⎘ Copy

👎

Formula

✖

Pain Ratio

Formula

`"PR" = "ER"/"PI"`

Example

`"7.333333"="110"/"15"`

Calculator

LaTeX

Reset

👍

Download Risk Management Formulas PDF PDF Image

Pain Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Pain Ratio = Effective Return/Pain Index
PR = ER/PI
This formula uses 3 Variables

Variables Used

Pain Ratio - Pain Ratio provides a better assessment for understanding the amount of return per unit of risk, measured in terms of capital preservation.
Effective Return - Effective Return is a measure that accurately calculates the actual amount of return gained on an investment, taking into account the effects of compounding over a certain period.
Pain Index - Pain Index is a tool for advisors to help them define and measure risk in terms investors can feel and relate to how much money they might lose.

STEP 1: Convert Input(s) to Base Unit

Effective Return: 110 --> No Conversion Required
Pain Index: 15 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PR = ER/PI --> 110/15

Evaluating ... ...

PR = 7.33333333333333

STEP 3: Convert Result to Output's Unit

7.33333333333333 --> No Conversion Required

FINAL ANSWER

7.33333333333333 ≈ 7.333333 <-- Pain Ratio

(Calculation completed in 00.004 seconds)

You are here -

Home » Financial » Common Probability Distribution » Risk Management » Pain Ratio

Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 20 Risk Management Calculators

Risk Adjusted Return on Capital

Go Risk Adjusted Return on Capital = (Revenue-Expenses-Expected Loss+Income From Capital)/Capital Cost

Sortino Ratio

Go Sortino Ratio = (Expected Portfolio Return-Risk Free Rate)/Standard Deviation of Downside

Maximum Drawdown

Go Maximum Drawdown = ((Trough Value-Peak Value)/Peak Value)*100

Modigliani-Modigliani Measure

Go Modigliani-Modigliani measure = Return on Adjusted Portfolio-Return on Market Portfolio

Interest Rate Risk

Go Interest Rate Risk = (Original Price-New Price)/New Price

Sterling Ratio

Go Sterling Ratio = (Compound Annual Growth Rate/(Average Maximum Drawdown-10))*-1

Risk Tolerance

Go Risk Tolerance = (Public Equity Exposure*0.35)/Monthly Gross Income

Market Risk Premium

Go Market Risk Premium = Expected Equity Market Rate-Risk Free Rate

Basis Risk

Go Basis Risk = Future Price of Contract-Spot Price of Hedged Asset

Credit Value at Risk

Go Credit Value at Risk = Worst Credit Loss-Expected Credit Loss

Economic Capital

Go Economic Capital = Earnings at Risk/Required Rate of Return

Calmar Ratio

Go Calmar Ratio = (Average Rate of Return/Maximum Drawdown)*-1

Upside/Downside Ratio

Go Upside/Downside Ratio = Advancing Issues/Declining Issues

Credit Spread

Go Credit Spread = Corporate Bond Yield-Treasury Bond Yield

Probability of Default Regression Model

Go Probability of Default = 1/(1+exp(-Linear Combination))

Default Risk Premium

Go Default Risk Premium = Interest Rate-Risk Free Rate

Pain Ratio

Go Pain Ratio = Effective Return/Pain Index

Risk Exposure

Go Risk Exposure = Risk Impact*Probability

Risk Determination

Go Risk = Risk Impact*Likelihood

Loss Given Default

Go Loss Given Default = 1-Recovery Rate

Pain Ratio Formula

Pain Ratio = Effective Return/Pain Index
PR = ER/PI

What is Pain Ratio?

The Pain Ratio provides a better assessment for understanding the amount of return per unit of risk, measured in terms of capital preservation.Like all ratios, the higher the pain ratio the better, since return is in the numerator and risk in the denominator. In order to ascertain what a “good” number is, one must compare against the pain ratios of peers or asset class indices.

How to Calculate Pain Ratio?

Pain Ratio calculator uses Pain Ratio = Effective Return/Pain Index to calculate the Pain Ratio, The Pain Ratio provides a better assessment for understanding the amount of return per unit of pain index which evaluates investments for the up, down, and side-to-side risk. Pain Ratio is denoted by PR symbol.

How to calculate Pain Ratio using this online calculator? To use this online calculator for Pain Ratio, enter Effective Return (ER) & Pain Index (PI) and hit the calculate button. Here is how the Pain Ratio calculation can be explained with given input values -> 4.666667 = 110/15.

FAQ

What is Pain Ratio?

The Pain Ratio provides a better assessment for understanding the amount of return per unit of pain index which evaluates investments for the up, down, and side-to-side risk and is represented as PR = ER/PI or Pain Ratio = Effective Return/Pain Index. Effective Return is a measure that accurately calculates the actual amount of return gained on an investment, taking into account the effects of compounding over a certain period & Pain Index is a tool for advisors to help them define and measure risk in terms investors can feel and relate to how much money they might lose.

How to calculate Pain Ratio?

The Pain Ratio provides a better assessment for understanding the amount of return per unit of pain index which evaluates investments for the up, down, and side-to-side risk is calculated using Pain Ratio = Effective Return/Pain Index. To calculate Pain Ratio, you need Effective Return (ER) & Pain Index (PI). With our tool, you need to enter the respective value for Effective Return & Pain Index and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Home

FREE PDFs

🔍 Search