SphinxRisk

At the market's risk

What your portfolio would have returned if it ran at the index's volatility.

How it is computed here

The risk-free rate plus your Sharpe ratio multiplied by the index's volatility — Modigliani's adjustment, which is the Sharpe ratio stated as a percentage.

Worked example

This one compares the portfolio with an index you choose, and the demo portfolio has none set — so there is no honest example to show here. On your own portfolio, choose a benchmark on the dashboard and it appears.

Where it misleads

It assumes you could borrow and lend at the risk-free rate. Nobody can. It is a comparable yardstick, not a return you could have collected.

Was the risk worth it?