How to Calculate Sortino Ratio?
Sortino Ratio calculator uses Sortino Ratio = (Expected Portfolio Return-Risk Free Rate)/Standard Deviation of Downside to calculate the Sortino Ratio, The Sortino Ratio is a statistical tool useful for evaluating the performance by considering the downward deviation. It is used to evaluate high-volatility portfolios. Sortino Ratio is denoted by S symbol.
How to calculate Sortino Ratio using this online calculator? To use this online calculator for Sortino Ratio, enter Expected Portfolio Return (R_{p}), Risk Free Rate (R_{f}) & Standard Deviation of Downside (σ_{d}) and hit the calculate button. Here is how the Sortino Ratio calculation can be explained with given input values -> 3.566667 = (11-0.3)/3.