Calmar Ratio

Calmar Ratio - A risk-adjusted return metric equal to the annualized return divided by the maximum drawdown. Commonly used with a 3-year return, it measures how much return is earned per unit of risk (drawdown). For example, a 30% annual return with a 15% max drawdown has a Calmar of 2.0. A higher Calmar is better (more return for the same risk).