Portfolio Analysis

Calculate the Sortino Ratio with Excel

This Excel spreadsheet calculates the Sortino Ratio for an investment, a measure of risk-adjusted return. Investments that emphasize their Sortino Ratio often try to minimize their losses as a part of their trading strategy.

Mean-Variance Portfolio Optimization with Excel

Mean Variance Optimization

This Excel spreadsheet implements Markowitz’s mean-variance theory. It optimizes asset allocation by finding the stock distribution that minimizes the standard deviation of the portfolio while maintaining the desired return. 

Calculate the Sharpe Ratio with Excel

This article describes how you can implement the Sharpe Ratio in Excel. As an alternative method, I’ll also give some VBA code that can also be used to calculate the Sharpe Ratio.

Financial Dictionary

Insuring your long-term financial stability shouldn’t be a chore, but it often is. The financial services industry are far too keen on acronyms, jargon and in-speak. In this section, I’m going to define several terms that everyone should know.

The Sharpe Ratio

Hedge funds traditionally use benchmarks like the Sharpe Ratio and Sortino Ratio to gauge the risk-efficiency of portfolios. The Sharpe …