Batting Average
Computes a manager's batting average: the percentage of periods in which the portfolio's return beat the benchmark's. Borrowed from baseball, the concept measures consistency, not magnitude — a manager who beats the index in seven of ten months has a 70% batting average. It's useful for telling apart those who win often from those who depend on a few exceptional months. Enter the lists of portfolio and benchmark returns, in the same order.
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Batting Average
Computes a manager's batting average: the percentage of periods in which the portfolio's return beat the benchmark's. Borrowed from baseball, the concept measures consistency, not magnitude — a manager who beats the index in seven of ten months has a 70% batting average. It's useful for telling apart those who win often from those who depend on a few exceptional months. Enter the lists of portfolio and benchmark returns, in the same order.
Winning often, not by luck
There's a difference between the manager who beats the index almost every month and the one who lags all year and is saved by a single spectacular quarter. Both can end with the same return, but the confidence they inspire differs. The batting average, borrowed from baseball, measures that consistency: the fraction of periods in which the portfolio beat the benchmark.
Note what it doesn't measure: size. Winning the index by a hundredth counts the same as winning by ten percent. That's why the batting average goes hand in hand with other metrics — a manager can have a high batting average and still lose cumulatively if the few defeats are catastrophic. But as a signal of regularity, it's direct and hard to fake.
Enter the list of portfolio returns and that of the benchmark, in the same order and with the same number of periods. The tool counts how many periods the portfolio won and returns the percentage. The longer the series, the more reliable the number: few periods can give a misleading batting average by pure chance.
Related Tools
Tracking Error
Computes a portfolio's tracking error: the standard deviation of the differences between the portfolio's returns and the benchmark's, period by period. It measures how much the portfolio diverges from its reference index — an index fund aims for tracking error near zero, while an active fund has a higher one, reflecting its bets. It's the denominator of the information ratio. Enter the lists of portfolio and benchmark returns, in the same order, separated by commas.
Up Capture Ratio
Computes a portfolio's up capture ratio: how much it kept pace with the benchmark during periods when the index rose, using the geometric compounded method (Morningstar standard). A value above one hundred percent means the portfolio captured more than the market's rise in good months; below, that it lagged on the way up. It's one half of the pair with down capture, which measures behavior on the way down. Enter the lists of portfolio and benchmark returns, in the same order.
Down Capture Ratio
Computes a portfolio's down capture ratio: how much it fell alongside the benchmark during periods when the index dropped, by the geometric compounded method. Here, less is better — a value below one hundred percent means the portfolio lost less than the market in declines, a sign of good protection. A negative value means the portfolio rose while the market fell. Together with up capture, it describes the manager's asymmetric profile. Enter the lists of portfolio and benchmark returns.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.