Conceptual | Comment

What is calmar ratio in finance?

This refers to a financial metric used to measure the investment performance of hedge funds and other institutions that allocate capital. The Calmar ratio compares the percentage return earned by an investment fund during a period to the maximum drawdown or loss suffered by the fund at any point during the same period. A low Calmar ratio indicates that the fund incurred greater risks to achieve its returns and vice versa. The ratio thus provides a good idea of the risk-adjusted performance of a fund.

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Printable version | Apr 5, 2020 8:16:56 AM |

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