Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is a Calmar Ratio?

By Lee Samaha – Updated Dec 31, 2024 at 4:34PM

Key Points

  • The Calmar ratio measures a fund's return against its risk, calculated by dividing annual return by maximum drawdown.
  • Fund B, despite a larger drawdown, scores highest in Calmar ratio, indicating a preference for higher returns over lower risk.
  • The Calmar ratio may not suit all investors; different risk/reward profiles need broader performance analysis tools.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.