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Financial Glossary

Sharpe Ratio

Measures whether an asset earns enough relative to its risk. A higher value is better.

Explanation

Ratio of (return − risk-free rate) / standard deviation. Sharpe > 1 means good risk-adjusted performance.

Technical detail

Annualized Sharpe from the walk-forward out-of-sample backtest (net of costs). Benchmark SXR8.DE is used as the reference point.

See also

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Educational content. Not investment advice. Past results do not guarantee future returns.