= Omega ratio
{wiki=Omega_ratio}
The Omega ratio is a risk-return measure used in finance to assess the performance of an investment or a portfolio. It provides a way to evaluate the likelihood of achieving returns above a certain threshold while taking into account the downside risk. The Omega ratio is calculated by comparing the probability-weighted returns of an investment above a specified target return (often chosen as zero or a risk-free rate) to the probability-weighted returns below that target.
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