Gain Loss Ratio

Measures a fund’s average gain in a gain period divided by the fund’s average loss in a losing period. Periods can be monthly or quarterly depending on the data frequency.

 

Gain/Loss Ratio = ABS (Average Gain in Gain Period ÷ Average Loss in Loss Period)

Investors who are required to select and monitor investment managers should develop a basic understanding of investment statistics. Quantitative tools can provide you with good insight that you can use in your qualitative interviews with managers and when monitoring your investments.