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When to use Sortino over Sharpe ratio

(Last Updated On: May 1, 2015)

When to use Sortino over Sharpe ratio

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. Sharpe ratios are better at analyzing portfolios that have low volatility because the Sortino ratio won’t have enough data points to calculate downside deviation. This makes the Sortino ratio better when analyzing highly volatile portfolios.

Read more: http://www.investopedia.com/terms/s/sortinoratio.asp#ixzz3Yv5bFZYK

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