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Risk & Portfolio Construction Calculator Guide

How to use Sharpe vs Sortino Calculator

Paste daily returns. The page reports Sharpe, Sortino, Calmar, and Omega side-by-side with a recommendation on which ratio fits the distribution rather than just the one that flatters the strategy.

By Orbyd Editorial · AI Fin Hub Team
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Sharpe vs Sortino Calculator

Paste daily returns; get Sharpe, Sortino, Calmar, and Omega side-by-side with a recommendation on which ratio fits your distribution.

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What It Does

Use the calculator with intent

Paste daily returns. The page reports Sharpe, Sortino, Calmar, and Omega side-by-side with a recommendation on which ratio fits the distribution rather than just the one that flatters the strategy.

Strategy reporters who need to know not just what each risk-adjusted ratio says but which one to lead with for an honest report.

Interpreting Results

If the distribution is approximately Gaussian, Sharpe and Sortino track each other; lead with Sharpe. If returns are heavily skewed or fat-tailed, Sortino or CVaR-based ratios tell a more accurate story.

Input Steps

Field by field

  1. 1

    Upload data

    Upload your return series.

  2. 2

    Set parameters

    Set target return for Sortino (default 0%; risk-free rate is another common choice).

  3. 3

    Set parameters

    Set the period frequency (daily/weekly/monthly) so annualization is correct.

  4. 4

    Read outputs

    Read Sharpe and Sortino side-by-side. The ratio between them tells you about return skew.

  5. 5

    Compare results

    Compare against your strategy peer group. Long-only equity Sharpe typically 0.3-0.7; market-neutral 1.0-1.5; HF-style 1.5+.

Common Scenarios

Use realistic starting points

Roughly Gaussian daily returns

Skew

near 0

Kurtosis

near 3

Sharpe and Sortino very close. Lead with Sharpe; mention Sortino as confirmation.

Heavily right-skewed (trend) returns

Skew

+1.5

Kurtosis

elevated

Sortino noticeably higher than Sharpe (good news from the asymmetric upside is rewarded). Lead with Sortino to give an honest picture.

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FAQ

Questions people ask next

The short answers readers usually want after the first pass.

Sharpe penalizes both upside and downside volatility — appropriate when you treat all volatility as risk. Sortino penalizes only downside (returns below a target threshold) — appropriate when upside volatility is desirable, like in long-volatility or trend-following strategies. The tool reports both side by side so you can see how they diverge.

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Planning estimates only — not financial, tax, or investment advice.