Calmar RatioView Financial Glossary Index
The California Managed Account Reports Ratio or Calmar Ratio is a comparison of the average annual compounded rate of return and the maximum drawdown risk of commodity trading advisers and hedge funds.
Calmar Ratio = average(rasset - rf) / Max Drawdown
(Both average excess returns and max drawdown are taken over a specified time period. Average excess returns are based on annual periods.)