ITA Wealth Management

  • Home
  • Blog
    • How To Use ITA Blog
    • Golden Rule of Investing
    • Basic Investing Principles
  • Guest Registration
  • Forum
  • Reset Password
  • About Me
    • Archive
    • Contact
You are here: Home / Forum

Forum

  • Forums
  • Members
  • Recent Posts
Forums
ITA Forums
General Discussions
Sortino vs. Sharpe ...
 
Notifications
Clear all

Sortino vs. Sharpe Ratios

 
General Discussions
Last Post by Lowell Herr 4 years ago
1 Posts
1 Users
0 Reactions
920 Views
Sticky
RSS
Forum 1
 Lowell Herr
(@lowell)
Noble Member Admin Registered
Joined: 13 years ago
Posts: 714
Topic starter July 3, 2022 8:53 AM  

Why do I use or prefer the Sortino Ratio over the Sharpe Ratio?  Whereas Sharpe looks at both upside and downside volatility, Sortino only cares about the downside.  Why is it important to care only about the downside?

Think about it for a moment.  We cheer for our portfolios to move up so we are rooting for upside volatility and don't want to be penalized for such moves.  We only want to be penalized for downside volatility and that is exactly what the Sortino Ratio does.  Therefore, Sortino is much preferred over the Sharpe Ratio.

While the Sharpe Ratio is ingrained in the minds of investors, it is time to think a bit deeper and when one does, the Sortino Ratio wins out.

Lowell

 



   
Quote
Topic Tags
Sortino Ratio

Leave a reply

Author Name

Author Email

Title *

 
Preview 0 Revisions Save Draft Saved
Forum Jump:
  Previous Topic
Next Topic  
Topic Tags:  Sortino Ratio (1) ,

Search Blog

Recent Posts

  • Schrodinger Portfolio Update: 17 April 2026
  • Franklin Sector BPI Portfolio Review: 14 April 2026
  • Millikan Portfolio Review: 9 April 2026
  • McClintock Sector BPI Portfolio Update: 8 April 2026
  • Copernicus Portfolio Review: 6 April 2026
Share:
Forum Information
Recent Posts
Unread Posts
Tags
  • 18 Forums
  • 621 Topics
  • 791 Posts
  • 7 Online
  • 290 Members
Our newest member: Bob
Latest Post: 4/17/2026 Update
Forum Icons: Forum contains no unread posts Forum contains unread posts
Topic Icons: Not Replied Replied Active Hot Sticky Unapproved Solved Private Closed

 Powered by wpForo version 3.0.6

(Visited 36,794 times, 163 visits today)

Share this:

  • Share on Facebook (Opens in new window) Facebook
  • Share on LinkedIn (Opens in new window) LinkedIn
  • More
  • Share on Bluesky (Opens in new window) Bluesky

Like this:

Like Loading...

Meta Data

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Search

Recent Posts

  • Schrodinger Portfolio Update: 17 April 2026 April 17, 2026
  • Franklin Sector BPI Portfolio Review: 14 April 2026 April 14, 2026
  • Millikan Portfolio Review: 9 April 2026 April 9, 2026
  • McClintock Sector BPI Portfolio Update: 8 April 2026 April 8, 2026
  • Copernicus Portfolio Review: 6 April 2026 April 6, 2026
  • Dirac 2026 Portfolio Review: 2 April 2026 April 4, 2026
  • Portfolio Hedge: 27 March 2026 March 28, 2026

Recent Comments

  • Lowell Herr on Franklin Sector BPI Portfolio Review: 14 April 2026
  • Lowell Herr on McClintock Sector BPI Portfolio Update: 8 April 2026
  • hedgehunter on Dirac 2026 Portfolio Review: 2 April 2026
  • hedgehunter on Portfolio Hedge: 27 March 2026
  • Lowell Herr on Carson Sector BPI Portfolio Review: 25 March 2026
  • hedgehunter on Portfolio Hedge: 27 March 2026
  • William Tynes on Portfolio Hedge: 27 March 2026
  • hedgehunter on Portfolio Hedging
  • Lowell Herr on McClintock Sector BPI Portfolio Review: 13 March 2026

Popular Posts

  • Schrodinger Portfolio Review: 29 January 2026
  • Portfolio Hedging
  • McClintock Sector BPI Portfolio Review: 13 March 2026
  • Portfolio Hedge: 27 March 2026
  • Schrodinger Portfolio Update: 24 February 2026
  • Buffett Indicator & Shiller PE Ratio
  • Franklin Sector BPI Portfolio Review: 20 March 2026
  • Beating the Dow With Bonds
  • Carson Portfolio Review: 26 February 2026
  • Carson Sector BPI Portfolio Review: 25 March 2026

General Investment News

Portfolios coming up for review.  Einstein, Carson, and Pauling are the critical portfolios next up for review.  Non-scheduled portfolios may be reviewed.  If you are a new user, check the posts you missed. Links to Random Posts are found in the lower right-hand footer or just to the right of what you are now reading.  Most popular posts are found in the lower left-hand footer.

Check the Forum for more detailed information.  If you wish to begin a financial discussion, use the Forum.

This blog is free to all who signup as a Guest.

Random Posts

  • Bullish Percent Indicators: 9 June 2023
  • Rutherford Portfolio Review (Tranche 4): 24 May 2024
  • Portfolio Construction: Where to Begin?
  • Investing Rules Regardless of Investing Model
  • McClintock Sector BPI Portfolio Review: 29 April 2025
  • Millikan Sector BPI Portfolio Review: 8 August 2023
  • Kahneman-Tversky Portfolio Review: 8 May, 2023
  • Schrodinger Portfolio Review: 8 January 2024
  • Millikan Portfolio Review: 4 December 2025
  • Bullish Percent Indicators: 24 November 2023
  • Schrodinger Portfolio Review: 11 August 2023

Log in | Website Design by BOING

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.
      %d