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sortino ratio

Sortino Ratio Explained: Why Downside Risk Beats Sharpe

September 12, 2026June 15, 2026 by Bruno
Sortino Ratio Explained: Why Downside Risk Beats Sharpe

The Sortino ratio measures returns per unit of downside risk, not total volatility. Here is the formula, a worked example, and when to use it.

Categories Investing Theory, Market Education Tags downside deviation, investing basics, portfolio risk, risk-adjusted returns, sharpe ratio, sortino ratio

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