Omega Ratio Explanation

Below please find a definition of “Omega Ratio”

Financial Analysis Training & Glossary TermsOmega Ratio: The omega ratio is more sophisticated than a alpha ratio and is the successor of the sharpe or jension ratios that you may already be familiar with.

For even given threshold or targeted return level (r) the Omega Ratio is the weighted gain/loss ratio relative to r. It uses all of the information in a return series instead of simple calculations of figures such as mean and variance.

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