What is the Sortino ratio and how does it apply to cryptocurrency investments?

3 answers

• ADHARSH CApr 24, 2021 · 5 years ago
  The Sortino ratio is a risk-adjusted performance measure that focuses on the downside risk of an investment. It takes into account the volatility of returns below a certain target or minimum acceptable return, typically the risk-free rate. In the context of cryptocurrency investments, the Sortino ratio helps investors evaluate the risk-adjusted returns of their portfolios. It provides a more accurate assessment of an investment's performance by considering only the downside volatility, which is particularly important in the highly volatile cryptocurrency market.
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• KarkarichSep 09, 2025 · 2 months ago
  The Sortino ratio is like the cool kid in the risk-adjusted performance measurement playground. While other ratios like the Sharpe ratio and the Treynor ratio also consider risk, the Sortino ratio goes a step further by focusing solely on the downside risk. It tells you how well an investment has performed relative to its downside volatility. So, when it comes to cryptocurrency investments, the Sortino ratio can give you a better idea of how well your portfolio has weathered the storm during market downturns.
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• Salman ShaikhSep 17, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the importance of risk-adjusted performance measures like the Sortino ratio. The Sortino ratio can be a valuable tool for investors looking to evaluate the risk and return of their cryptocurrency investments. It provides a more nuanced perspective on performance by considering the downside risk. Whether you're a seasoned trader or a beginner in the cryptocurrency market, understanding the Sortino ratio can help you make more informed investment decisions.
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