# Upside/Downside Capture Ratio

View Financial Glossary Index

## Definition

The upside/downside capture ratio measures the ratio of the upside and downside of an investment vs a benchmark.

This ratio explains to you how an investment typically performs in relation to their benchmark index.

An upside/downside ratio of 100 means that the investment typically performs the same as the benchmark regardless of if it is rising or falling. If the benchmark increases by 10%, the investment increases by 10%. If the benchmark decreases by 5%, the investment decreases by 5%.

Investments usually don't have upside/downside ratios of 100. Sometimes, an investment may rise 15% when their benchmark rises by 10% but falls 12% when the market falls 10%.

In this case, we calculate the upside/downside capture ratio by dividing the investment's upside return and dividing by the downside return:

(.15/.10)/(.12/.10) = 1.25.

Multiplying this by 100 gives us an upside/downside capture ratio of 125 for this investment.

## Formula

Upside/Downside Capture Ratio = (Investment's Upside / Benchmark's Upside) / (Investment's Downside / Benchmark's Downside) *100

## Are you an investing professional?

Click here to request a live demo of YCharts Professional, our premium suite of tools and data.
Learn more about our professional products. Call (866) 965-7552 or email sales@ycharts.com

Advertisement

### {{root.upsell.info.feature_headline}}.

#### {{root.upsell.info.feature_description}} Please note that this feature is only available as an add-on to YCharts subscriptions. Please note that this feature requires full activation of your account and is not permitted during the free trial period.

{{root.upsell.info.call_to_action}} No credit card required.

Already a subscriber? Sign in.