4,000+ Risk Ratios — Calculated Automatically

Sharpe Ratio, Sortino Ratio & Omega Ratio Calculation Software

AlternativeSoft automatically calculates Sharpe ratio, Sortino ratio, Omega ratio, Calmar ratio and 4,000+ other risk-adjusted statistics across 500,000+ funds — with consistent institutional methodology, peer benchmarking and complete audit trail.

Ratios calculated:Sharpe RatioSortino RatioOmega RatioCalmar RatioTreynor RatioInformation Ratio
Hedgeweek Best Risk Management Software
4 Consecutive Years — 2020 · 2021 · 2022 · 2023
150+
Institutional clients worldwide
$1.5tn+
AuM managed by our clients
500k+
Funds in our database
Trusted by
Aberdeen Asset ManagementAllianceBernsteinBNP ParibasBessemer TrustRaiffeisen Capital ManagementUnigestionLyxor Asset ManagementKedge CapitalLumyna InvestmentsProgressive CapitalAberdeen Asset ManagementAllianceBernsteinBNP ParibasBessemer TrustRaiffeisen Capital ManagementUnigestion
The Problem & The Solution

Risk Ratio Calculation — The Problems and the Better Approach

Problems with Manual Risk Ratio Calculation

Manual risk ratio calculation in Excel creates inconsistency, errors and a bottleneck that slows systematic fund evaluation across large universes.

  • Calculating Sharpe, Sortino and Omega ratios manually in Excel for hundreds of funds is extremely slow and prone to methodology errors
  • Inconsistent risk-free rate assumptions and return frequency treatment creates unreliable cross-fund comparisons
  • The Omega ratio requires non-parametric calculation that Excel handles unreliably for non-standard return distributions
  • Modified Sharpe and Cornish-Fisher VaR adjustments are beyond standard spreadsheet capability
  • No peer context — a Sharpe of 0.8 is meaningless without knowing the peer distribution for that specific strategy

How AlternativeSoft Handles Risk Ratio Calculation

All ratios calculated automatically with consistent institutional methodology — and all presented in peer group context for meaningful interpretation.

  • Sharpe, Sortino, Omega, Calmar, Modified Sharpe and all variants calculated with consistent, configurable methodology
  • Configurable risk-free rate and return frequency applied consistently across the entire fund universe simultaneously
  • All ratios presented in peer group context — quartile ranking and full distribution visualisation
  • Full calculation transparency — view the inputs and methodology behind every statistic
  • Statistical significance testing for all regression-based metrics including alpha and beta estimates
Risk Ratio Calculation Engine

Every Risk-Adjusted Ratio — Calculated Automatically

From Sharpe to Omega — all ratios, all funds, consistent methodology, peer context.

Sharpe Ratio

Annualised excess return over risk-free rate divided by annualised standard deviation. Configurable risk-free rate and monthly or weekly return frequency.

Sortino Ratio

Excess return divided by downside deviation (standard deviation of negative returns only). More appropriate for hedge fund strategies where upside volatility is not a risk concern.

Omega Ratio

Probability-weighted ratio of returns above threshold to returns below. Captures the full return distribution including higher moments — ideal for non-normal hedge fund return distributions.

Calmar Ratio

Annualised return divided by maximum drawdown. Highly relevant for institutional investors where drawdown risk is a primary concern alongside absolute return level.

Information Ratio

Excess return over benchmark divided by tracking error. Measures consistency of alpha generation relative to benchmark-relative risk.

Peer Quartile Context

Every ratio presented in peer group context. Know exactly where a manager sits within its strategy peer distribution — not just in absolute terms.

150+
Institutional Clients
Worldwide
$1.5tn+
AuM Managed by
Our Clients
500k+
Funds in Our
Database
20+
Years of Excellence
Since 2005
How It Works

How AlternativeSoft Calculates Risk Ratios

01

Select Funds and Configure Parameters

Choose funds from the 500,000+ database or import your own. Set risk-free rate, return frequency and analysis period once — applied consistently to all funds.

02

All Ratios Calculated Instantly

4,000+ statistics computed in seconds for any number of funds. No formulas, no spreadsheets, no inconsistency across calculations.

03

Compare in Peer Context

Every ratio shown alongside peer group quartile ranking and distribution. Export to Excel or generate automated comparison reports for investment committees.

Who This Is For

Who Benefits from Automated Risk Ratio Calculation

Fund Analysts

Replace manual ratio spreadsheets with automated calculation across your entire universe. Spend time on interpretation and selection, not computation and data entry.

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Portfolio Managers

Monitor risk-adjusted return ratios across your portfolio continuously. Receive alerts when a manager's Sharpe or Sortino ratio deteriorates significantly.

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Investment Committees

Consistent, auditable risk ratio analysis with full peer context — supporting evidence-based investment decisions with complete methodological transparency.

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Client Testimonials

Trusted by 150+ Leading Institutions

AlternativeSoft streamlines many useful performance-based analytics including portfolio optimisation, peer evaluation, and relative analyses. An intuitive platform that is additive to our processes.

Aberdeen Asset Management
Head of Risk Management
★★★★★

A practical and user-friendly tool used as part of our portfolio construction and risk management process. Their extensive support and responsiveness provides real added value.

AllianceBernstein
Co-head, Risk Management & Portfolio Construction
★★★★★

From statistical analysis on a single hedge fund to portfolio construction, risk analysis and stress testing — one of the most effective and intuitive tools I have handled.

BNP Paribas
Hedge Fund Solutions
★★★★★
Best Risk Management Software
Hedgeweek — 4 Consecutive Years
Best Portfolio Analytics Platform
HFM European Awards
10+ Industry Awards
Recognised since 2005
ISO & GDPR Compliant
Enterprise-grade Security
FAQ

Frequently Asked Questions

The Sharpe ratio is the annualised excess return (return minus risk-free rate) divided by annualised standard deviation. It measures return per unit of total risk. AlternativeSoft calculates Sharpe ratio with configurable risk-free rates and supports both monthly and weekly return series with consistent annualisation methodology.
The Sortino ratio replaces the standard deviation denominator with downside deviation — the standard deviation of only negative returns (or returns below a minimum acceptable return threshold). This makes it more appropriate for strategies where upside volatility is not considered a risk, such as CTAs and many hedge fund strategies with positive return skewness.
The Omega ratio is the probability-weighted ratio of returns above a threshold to returns below it, calculated from the full empirical return distribution. Unlike Sharpe and Sortino, Omega captures all higher moments — skewness and kurtosis — making it the most complete single measure of risk-adjusted performance for hedge funds with non-normal return distributions.
The Modified Sharpe ratio (Cornish-Fisher Sharpe) replaces standard deviation with modified VaR that adjusts for the non-normality of returns (skewness and kurtosis). It provides a more accurate risk-adjusted measure for hedge funds with fat-tailed or skewed return distributions where standard deviation understates actual risk.
AlternativeSoft calculates performance metrics for private equity including IRR, TVPI, DPI, RVPI, MOIC and PME. For private market funds with irregular cash flows, these metrics replace the standard liquid alternative risk ratios and can be benchmarked against Preqin and Cambridge Associates vintage year indices.
Request a Demo

See AlternativeSoft
in Action

Join 150+ institutional investors who rely on AlternativeSoft to select and monitor funds. Book a personalised demo with our team today.

  • Live walkthrough of the full platform
  • Tailored to your asset class — hedge funds, mutual funds or private markets
  • Q&A with our investment analytics specialists
  • Free trial access available following the demo
  • Dedicated onboarding and implementation support
Hedgeweek Best Risk Management Software — voted by clients 4 years running
Data integrations include:
BloombergeVestmentMorningstarPreqinPitchbookHFR

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