Calmar Ratio Formula - Finance
Learn the calmar ratio formula with examples, step-by-step guide, and calculator tools. Assess hedge fund and managed futures performance by comparing returns to maximum peak-to-trough decline
The calmar ratio formula is a fundamental concept in finance. Assess hedge fund and managed futures performance by comparing returns to maximum peak-to-trough decline. This page provides a comprehensive guide with worked examples and practical applications.
The Formula
Variables
Step-by-Step Guide
- 1
Step 1: Gather your data values
- 2
Step 2: Apply the formula
- 3
Step 3: Perform the calculations
- 4
Step 4: Interpret the result
Examples
Example 1
Example 1: [0.12,0.03,0.25] → Calmar Ratio = (12% annual return - 3% risk-free rate) / 25% maximum drawdown = 0.36
Example 2
Example 2: 0.36
Frequently Asked Questions
What is the calmar ratio formula?
Assess hedge fund and managed futures performance by comparing returns to maximum peak-to-trough decline
How do I calculate calmar ratio formula?
Use the formula: CR = \frac{R_p - R_f}{MD}. Follow the steps provided above.
What tools can help with calmar ratio formula?
We provide online calculators: npv-calculator, irr-calculator, business-loan-calculator