{"id":216,"date":"2024-06-25T00:16:27","date_gmt":"2024-06-25T00:16:27","guid":{"rendered":"https:\/\/diversiview.online\/help\/?p=216"},"modified":"2026-04-09T03:57:50","modified_gmt":"2026-04-09T03:57:50","slug":"portfolio-sharpe-ratio","status":"publish","type":"post","link":"https:\/\/diversiview.online\/help\/portfolio-sharpe-ratio\/","title":{"rendered":"Portfolio Sharpe Ratio"},"content":{"rendered":"\n

Sharpe ratio is a widely used method for calculating the risk-adjusted return and a measurement of the portfolio\u2019s performance per unit of portfolio\u2019s volatility.<\/p>\n\n\n\n

\"Diversiview<\/figure>\n\n\n\n

How to calculate Portfolio Sharpe ratio<\/h2>\n\n\n\n

The formula for Sharpe ratio is:<\/p>\n\n\n\n

Sharpe = (Ep – Rf) \/ Rp<\/strong><\/p>\n\n\n\n

where Ep = expected return of the portfolio, Rf = risk-free rate of return for the market, and Rp = risk (volatility) of portfolio returns <\/p>\n\n\n\n

For the purpose of Sharpe ratio calculations, Diversiview uses the risk-free rate of return of the market in your profile settings. To learn how to select your preferred market, click here<\/a>.<\/p>\n\n\n\n

A portfolio that is well diversified will have a Sharpe ratio higher than a non-diversified portfolio, and investors generally look for a Sharpe ratio around or above 1.<\/p>\n\n\n\n

Where to find Portfolio Sharpe Ratio in Diversiview<\/h2>\n\n\n\n

You can find the Sharpe Ratio for your portfolio on your dashboard or the Diversiview analysis page, under the \u2018Performance & Benchmark\u2019 section. The table shows the Sharpe ratio in its current allocation, and it may also show the potential Sharpe value in the Optimal Portfolio Allocation.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Calculate Your Portfolio Sharpe Ratio<\/h2>\n\n\n\n

Log in<\/a> or sign up<\/a> to your Diversiview account today.<\/strong><\/p>\n\n\n\n

Disclaimer:<\/strong><\/p>\n\n\n\n

LENSELL GROUP Pty Ltd, ACN 646 467 941, trading as LENSELL, is a Corporate Authorised Representative of Foresight Analytics & Ratings Pty Ltd ( Australian Financial Services Licence No. 494552). All information provided to you by LENSELL is intended for general informational purposes only. It does not consider your individual financial circumstances and should not be relied upon without consulting a licensed investment professional or adviser.<\/p>\n\n\n\n

The content on this website and in any of its applications is not a financial offer, recommendation, or advice to engage in any transaction. Investment products referenced in our software or marketing literature carry inherent risks, and you should note that past performance does not guarantee any future results. In all our modelling, no transaction costs or management fees are factored into performance analysis.<\/p>\n\n\n\n

The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which LENSELL is not regulated or able to market its services.<\/p>\n\n\n\n

Furthermore, all information used across our platform or website may be based on sources deemed reliable but is provided \u201cas is\u201d without guarantees of accuracy or updates. LENSELL and Foresight Analytics & Ratings disclaim all warranties and accepts no liability for any loss or damage resulting from use or reliance on any material or data embedded in our technology platform or digital media. Where liability cannot be excluded by law, it is limited to resupplying the information.<\/p>\n\n\n\n

Please view our Financial Services Guide<\/a>, Terms Of Service<\/a> and Privacy Policy<\/a> before making any investment decision using the information available on our website or on any of our applications. LENSELL, Diversiview and StockLenz are trademarks registered in Australia.<\/p>\n","protected":false},"excerpt":{"rendered":"

Sharpe ratio is a widely used method for calculating the risk-adjusted return and a measurement of the portfolio\u2019s performance per […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Portfolio Sharpe Ratio | Diversiview Help","_seopress_titles_desc":"Sharpe ratio is a widely used method for calculating the risk-adjusted return. Learn what insights this gives about your investment portfolio.","_seopress_robots_index":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[37,95,5,53,33],"tags":[],"_links":{"self":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/216"}],"collection":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/comments?post=216"}],"version-history":[{"count":11,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/216\/revisions"}],"predecessor-version":[{"id":1749,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/216\/revisions\/1749"}],"wp:attachment":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/media?parent=216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/categories?post=216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/tags?post=216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}