Sharpe Ratio Calculator
Calculate risk-adjusted return for crypto investments
Sharpe Ratio Calculator
About This Calculator
The Sharpe Ratio Calculator helps you evaluate the performance of an investment by adjusting for its risk. It compares the average return of the investment to the risk-free rate, normalized by the volatility of returns.
How It Works
- Input Returns: Enter periodic returns (daily, weekly, monthly) one per line
- Risk-Free Rate: Enter the risk-free rate for the same period
- Calculation: Computes average return, standard deviation, and Sharpe ratio
- Results: Displays the Sharpe ratio and related statistics
Use Cases
- Comparing risk-adjusted returns of different crypto assets
- Evaluating portfolio performance
- Assessing the effectiveness of trading strategies
- Making informed investment decisions