Return Metrics

Return Metrics Terms

Risk-adjusted return measures used to evaluate the efficiency of a portfolio manager's performance.

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Total terms 9
With calculator 7
Last updated Apr 2026
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Return Metrics

Alpha

The excess return of an investment relative to a benchmark, after adjusting for the level of market risk taken.

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Calmar Ratio

Compares a fund's annualised growth rate to its worst drawdown — a risk-adjusted return metric for drawdown-sensitive investors.

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Capture Ratios

Measure how much of a benchmark's gains a fund captures in rising markets, and how much of its losses it incurs in falling markets.

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Information Ratio

Measures how consistently a fund generates active return above its benchmark per unit of active risk (tracking error).

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Jensen's Alpha

The excess return a portfolio earns above what CAPM predicts given its level of systematic risk.

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Sharpe Ratio

Measures excess return per unit of total volatility — the most widely used risk-adjusted performance metric.

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Sortino Ratio

Like the Sharpe ratio but penalises only downside volatility — better for asymmetric return distributions.

Return Metrics

Total Return

The overall gain or loss from an investment including both price appreciation and income such as dividends or interest.

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Treynor Ratio

Measures excess return per unit of systematic (market) risk — useful for comparing diversified portfolios.