Rio Tinto Sortino Ratio
| RIO Stock | | | USD 105.38 2.27 2.20% |
The Sortino Ratio measures risk-adjusted return using only downside deviation rather than total volatility. Unlike the Sharpe Ratio, which penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only returns below a target threshold, making it a more targeted measure of harmful volatility. Below is Rio Tinto's current Sortino Ratio with peer comparisons and related risk metrics.
Current Sortino Ratio Value
Rio Tinto carries a Sortino Ratio of 0.0933, consistent with its current reading on this measure. This reflects Rio Tinto's positioning relative to its own recent range within Diversified Metals & Mining.
Sortino Ratio | = | ER[a] - ER[b]DD |
| = | 0.0933 | |
| ER[a] | = | Expected return on investing in Rio Tinto |
| ER[b] | = | Expected return on market index or selected benchmark |
| DD | = | Downside Deviation |
Sortino Ratio Peers Comparison
Rio Tinto falls above the 0.07 peer average for Sortino Ratio. BHP Group Limited leads at 0.1295 while Agnico Eagle Mines registers the lowest at 0.0074. Rio Tinto's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Sortino Ratio Relative To Other Indicators
The chart below plots Sortino Ratio against Maximum Drawdown for Rio Tinto and its peers. Each point represents one equity — position along the horizontal axis shows Sortino Ratio while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
Rio Tinto shows nearly
85.73 of Maximum Drawdown per unit of Sortino Ratio (
0.09 versus
8.00 ). This indicates Maximum Drawdown substantially exceeds Sortino Ratio for Rio Tinto.
Methodology, Assumptions & Data Sources
The current Sortino Ratio for Rio Tinto is 0.0933. The Sortino Ratio for Rio Tinto is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. Rio Tinto operates in the basic materials sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Indicator accuracy depends on data continuity across the calculation period. Gaps in trading history may affect the output.
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