CALMAR RATIO

The way of comparing the regular yearly compounded rate of return and the highest drawdown risk of commodity exchange advisors and hedge funds. The lesser the Calmar Ratio, the poor the investment execute on a risk-adjusted basis over the particular span of time; the bigger the Calmar Ratio, the finer it finish. Literally, the span of time used is three years, but this can be lower or higher according on the investment in question.