ELI5: Explain Like I'm 5

Sortino ratio

The Sortino Ratio is a way of measuring how well an investment is doing. It calculates the difference between how much money you make and how much money you lose. It divides the good returns that you get by the bad returns. If the number is higher than 1, it means your investment is doing better than average. If the number is lower than 1, it means that your investment is not doing as well as you'd like.