Why I Use Sharpe Ratio To Rank Momentum Stocks and How to Calculate?

Описание: In this video, we discuss risk-adjusted returns and how Sharpe returns help us accomplish incorporate price volatility into the picture when analysing the relative performance of different stocks. In our core momentum portfolio as well as the Nifty Top 10 portfolio, we use an average of 3M/6M/9M/12M sharpe returns to rank momentum stocks.

We also discuss how to calculate sharpe ratio for any stock for different look-back periods using simple formulae on Google Sheets.
Link to the Google Sheet used in this video: https://bit.ly/3ZAoIfM
Please create a copy of the sheet for your own purposes.

Our core momentum portfolio based on the Nifty 500 is live for learning and sharing purpose, and you can access it any time. All the prices, weights and returns are updated in realtime via Google Finance. Please access the portfolio sheet here: http://bit.ly/4axM7lf
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If you need a copy of the portfolio sheet, please reach out to me at [email protected]. Please note that not all of the stuff is automated, there's a fair bit of manual effort that goes on.
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Added below are some resources and videos you may find useful in this learning journey.
1. Core Momentum Portfolio (Nifty 500): http://bit.ly/4axM7lf
2. My Core Portfolio Momentum Strategy: https://bit.ly/3HjxGDS
3. Nifty Top 10 Momentum Portfolio (Nifty 50): https://bit.ly/3y5h0i3
4. Nifty Top 10 Momentum Portfolio Strategy Video:    • Nifty Top 10 Momentum Portfolio vs Index (...  
5. MoMo India Screener (this is the paid screener which I use for ranking): https://momoindiascreener.in/
6. How Selection Universe & No. of Stocks impact Momentum Returns (with backtested results):    • How To Get Maximum Returns in Momentum Inv...  
7. How Often Should You Change Your Stocks: How Rebelancing Frequency Affects Momentum Performance (with backtested results):    • How Often To Change Your Stocks For Maximu...  
8. How to Manage Drawdowns in Momentum Investing:    • How to Reduce Drawdowns in Momentum Invest...  
9. When Should You Sell or Exit a Stock:    • When Should You Sell A Stock? Exit Strateg...  
10. Momentum vs other factors (document by Blackrock): https://bit.ly/492Iyli
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You can follow me on X (former Twitter) here: https://x.com/investing_fool
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DISCLAIMER: This is just edutainment (education + entertainment), NOT financial advice.
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