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What is Calmar Ratio?

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Calmar Ratio

Return divided by the maximum drawdown. Because the denominator is the deepest loss actually experienced rather than volatility, it is closer to a measure of performance relative to the pain an investor can bear. Over short periods with shallow drawdowns, the value can look unrealistically high.

Calmar Ratiomaximum drawdownannual return ÷ max drawdown — reward against pain endured

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Calmar Ratio meaning — Trading glossary | MarketSurfer