##  [Sortino Ratio](/sortino-ratio) 

  ##  [Sortino Ratio](https://finance.quantumdictionary.io/sortino-ratio-0) 

  

 [![Finance & Accounting Dictionary](/sites/default/files/styles/large/public/2026-01/Finance%20%26%20Accounting.png.webp?itok=6gCSbld3)](/topic-specific-dictionaries/social-sciences/finance-accounting)

- Social Sciences -

**Finance & Accounting Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A financial performance metric concept defining ratios and indicators used to summarize profitability, efficiency, and risk. It governs standardized calculations that enable consistent evaluation across periods, peers, or business units. It does not provide a complete picture without underlying accounting details and awareness of one-time effects and seasonality.



 

 

 

 

 





 

 



 ##  [Sortino Ratio](https://social.quantumdictionary.io/sortino-ratio-1) 

  

 [![Social Sciences Dictionary](/sites/default/files/styles/large/public/2026-01/Social%20Sciences.png.webp?itok=FFG6NW1n)](/topic-specific-dictionaries/social-sciences)



**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

A downside‑risk‑adjusted performance metric defined as the average excess return over a chosen target or minimum acceptable return (MAR) divided by the downside deviation (standard deviation of returns below the target) over the same period: Sortino Ratio = (Rp − MAR) / σd. It penalizes only negative performance relative to the target, not upside variability.