Comparison of Risk vs. Return Metrics

What are Risk vs. Return Metrics?

Risk vs. Return Metrics are analytical tools used in finance to assess the relationship between the level of risk taken by an investment and the potential return generated from that investment.

Sharpe ratio vs. Information ratio

	Sharpe ratio	Information ratio
description	widely used measure of risk-adjusted return that is used to evaluate the performance of an investment portfolio or financial instrument. It compares the return of an investment to its volatility, which is measured by the standard deviation of returns.	performance metric in investing that evaluates the excess return of a portfolio or investment relative to its benchmark, adjusted for the amount of risk taken to achieve that return.
numerator	excess return (above the risk-free rate)	average excess return (above the risk-free rate)
denominator	standard deviation of return	standard deviation of excess return
formula	https://www.investopedia.com/terms/s/sharperatio.asp#:~:text=The%20Sharpe%20ratio%20is%20calculated,of%20the%20portfolio's%20excess%20return.
SPY range