Washington Federal Sortino Ratio
| WAFD Stock | | | USD 35.20 -0.22 -0.62% |
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 Washington Federal's current Sortino Ratio with peer comparisons and related risk metrics.
Current Sortino Ratio Value
The Sortino Ratio of 0.0829 for Washington Federal indicates its current reading on this measure. This reflects Washington Federal's positioning relative to its own recent range within Regional Banks.
Sortino Ratio | = | ER[a] - ER[b]DD |
| = | 0.0829 | |
| ER[a] | = | Expected return on investing in Washington Federal |
| ER[b] | = | Expected return on market index or selected benchmark |
| DD | = | Downside Deviation |
Sortino Ratio Peers Comparison
Relative to peers, Washington Federal's Sortino Ratio is above the group average of 0.05. Peer readings range from 0.0118 (Banner) to 0.1091 (First Financial Bancorp), reflecting wide dispersion across the sector. Washington Federal'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 Washington Federal 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.
With Sortino Ratio at
0.08 and Maximum Drawdown at
9.05 , Washington Federal shows a
109.18 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Sortino Ratio for Washington Federal.
Methodology, Assumptions & Data Sources
Washington Federal has a current Sortino Ratio reading of 0.0829. Washington Federal's Sortino Ratio is computed from historical closing prices over the selected time horizon, applying the indicator's defined mathematical transformation to raw price data. Data sources include daily closing prices from supported exchanges, with standard corporate action adjustments applied. Washington Federal operates in the financial services sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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