Decoded Intelligence Signal
Sortino Ratio
advanced
risk
Verified: May 27, 2026Lexicon Core Definition
A risk-adjusted return metric calculated as (portfolio return − risk-free rate) / downside deviation; superior to the Sharpe ratio for strategies with asymmetric return distributions because it penalizes only negative volatility.
Analysis Breakdown
A risk-adjusted return metric calculated as (portfolio return − risk-free rate) / downside deviation; superior to the Sharpe ratio for strategies with asymmetric return distributions because it penalizes only negative volatility. Full explanation coming soon when Journey 25 content is ingested.