Pain Ratio

 The pain ratio is the analogue to the Sharpe Ratio, with the pain index used instead of the standard deviation:

    Pain Ratio = (AnnRtn(r1,...,rn) - AnnRtn(c1,...,cn)) / PainIndex(r1,...,rn)


    r1,...,rn = manager return series
    c1,...,cn = cash equivalent return series

To view our quick tip video on Pain Ratio, click the following link:

For additional detail, please see our white paper regarding Pain Index and Pain Ratio.


Informa Investment Solutions is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.