--- title: Sortino Ratio description: The Sortino Ratio is the return earned in excess of a Minimum Acceptable Return (MAR) per unit of risk as defined as downside deviation. The Sortino Ratio is a variation of the Sharpe Ratio that diffe --- [Skip to content](https://www.allocator.com/knowledge/sortino-ratio#main-content) English Show submenu for translations ![Allocator_Logo_Colour_Mark.png\]](https://www.allocator.com/hs-fs/hubfs/Branding%20-%20Images%20and%20Logos/Allocator%20logos/Allocator_Logo_Colour_Mark.png?height=40&name=Allocator_Logo_Colour_Mark.png) - [Knowledge Base](https://www.allocator.com/knowledge) - [Allocator Platform](https://secure.allocator.com/) - [Sign out](https://www.allocator.com/_hcms/mem/logout) Open main navigation Close main navigation - [Knowledge Base](https://www.allocator.com/knowledge) - [Allocator Platform](https://secure.allocator.com/) - [Sign out](https://www.allocator.com/_hcms/mem/logout) - English Show submenu for translations Allocator Knowledge Base - There are no suggestions because the search field is empty. 1. [Allocator Knowledge Base](https://www.allocator.com/knowledge?hsLang=en) 2. [Hedge Funds](https://www.allocator.com/knowledge/hedge-funds?hsLang=en) 3. [Calculation Definitions](https://www.allocator.com/knowledge/hedge-funds?hsLang=en#calculation-definitions) # Sortino Ratio ![](https://www.allocator.com/hubfs/image-png-Nov-25-2022-03-42-15-5874-PM.png) The Sortino Ratio is the return earned in excess of a Minimum Acceptable Return (MAR) per unit of risk as defined as downside deviation. The Sortino Ratio is a variation of the Sharpe Ratio that differentiates harmful volatility from total volatility. The higher the Sortino Ratio, the better the returns have been relative to the volatility of the downside risk.  The default risk free rate on Allocator is the 10-year Treasury Constant Maturity Rate, but this can be changed. The Minimum Acceptable Return on Allocator is 2% but this can be changed.  - [Platform Knowledge Base](https://www.allocator.com/knowledge/platform-knowledge-base?hsLang=en#main-content) - [Stay on Top of Your Onboarding](https://www.allocator.com/knowledge/platform-knowledge-base?hsLang=en#stay-on-top-of-your-onboarding) - [Hedge Funds](https://www.allocator.com/knowledge/hedge-funds?hsLang=en#main-content) - [Calculation Definitions](https://www.allocator.com/knowledge/hedge-funds?hsLang=en#calculation-definitions) - [How-To Guides](https://www.allocator.com/knowledge/hedge-funds?hsLang=en#how-to-guides) - [Private Capital Funds](https://www.allocator.com/knowledge/private-capital-funds?hsLang=en#main-content) - [Calculation Definitions](https://www.allocator.com/knowledge/private-capital-funds?hsLang=en#calculation-definitions) - [How-To Guides](https://www.allocator.com/knowledge/private-capital-funds?hsLang=en#how-to-guides) - [Export Your Data](https://www.allocator.com/knowledge/export-your-data?hsLang=en#main-content) - [Allocator Excel Add-In](https://www.allocator.com/knowledge/export-your-data?hsLang=en#allocator-excel-add-in) - [Allocator API](https://www.allocator.com/knowledge/export-your-data?hsLang=en#allocator-api) - [What's New on Allocator?](https://www.allocator.com/knowledge/whats-new-on-allocator?hsLang=en#main-content) - [Q1 2026](https://www.allocator.com/knowledge/whats-new-on-allocator?hsLang=en#q1-2026) [![Chill listening crop-3](https://www.allocator.com/hs-fs/hubfs/Branding%20-%20Images%20and%20Logos/Allocator%20logos/Allocator_Logo_Colour%20No%20Background.png?width=171&height=24&name=Allocator_Logo_Colour%20No%20Background.png "Chill listening crop-3")](https://knowledge.allocator.com/knowledge?hsLang=en) www.allocator.com Copyright © 2026, Allocator