Sharpe Ratio
Sharpe Ratio — A risk-adjusted return metric that compares strategy returns to volatility — higher is better.
- Quick definition: A risk-adjusted return metric that compares strategy returns to volatility — higher is better.
- Category: Performance Metrics
Full Definition
A Sharpe above 1.0 is good, above 2.0 is excellent, above 3.0 is exceptional.
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