What is the 'DownMarket Capture Ratio'
The downmarket capture ratio is a statistical measure of an investment manager's overall performance in downmarkets. The downmarket capture ratio is used to evaluate how well or poorly an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager's returns by the returns of the index during the downmarket and multiplying that factor by 100.
BREAKING DOWN 'DownMarket Capture Ratio'
An investment manager who has a downmarket ratio less than 100 has outperformed the index during the downmarket. For example, a manager with a downmarket capture ratio of 80 indicates that the manager's portfolio declined only 80% as much as the index during the period in question. Many analysts use this simple calculation in their broader assessments of individual investment managers.

UpMarket Capture Ratio
A statistical measure of an investment manager's overall performance ... 
Combined Ratio
A measure of profitability used by an insurance company to indicate ... 
Index Investing
A form of passive investing that aims to generate the same rate ... 
Ratio Analysis
A ratio analysis is a quantitative analysis of information contained ... 
Current Ratio
The current ratio is a liquidity ratio measuring a company's ... 
Batting Average
A statistical measure used to measure an investment manager's ...

Mutual Funds & ETFs
DODGX: A Risk Statistics Case Study
Review a volatility and modern portfolio theory statistics case study of the Dodge & Cox Stock Fund, and consider whether it suits your investment profile. 
Mutual Funds & ETFs
3 Expensive Growth ETFs Worth Your While (PWB, QQXT)
Compare the performances of three growth ETFs with their expense ratios, and consider the cost efficiency of the ETFs having higher management expenses. 
Mutual Funds & ETFs
3 Expensive U.S. Fixed Income ETFs Worth Your While (FPE, PGF)
Consider the impressive yields and capital appreciation opportunities presented by preferred stock ETFs when selecting fixedincome investments. 
Mutual Funds & ETFs
DBA vs. USAG: Comparing Agriculture ETFs
Read a comparison of USAG and DBA, and learn about the characteristics, strategies and performance statistics of these agriculture exchangetraded funds. 
Mutual Funds & ETFs
Create Your Own U.S. Equity Portfolio
Find out how to structure your portfolio so you can maximize returns. 
Fundamental Analysis
Efficiency Ratio
There are many types of efficiency ratios, but all measure how well a company utilizes its resources to make a profit. Business managers use these ratios to determine how well they are operating ... 
Mutual Funds & ETFs
Analyzing Mutual Funds For Maximum Return
Using a few simple metrics will help you pick the right fund for your portfolio. 
Investing Basics
Analyze Investments Quickly With Ratios
Make informed decisions about your investments with these easy equations. 
Forex
The Price To Earnings Ratio Explained
The price to earnings ratio is one of the most important ratios in investing. Find out how it is calculated, how it can be used and what it tells investors about a particular stock. 
Professionals
Average Market Returns
We look at the major indexes and their average yearly returns.

What is the difference between a sharpe ratio and an information ratio?
Understand the meaning of the Sharpe ratio and the information ratio, and understand how they differ as tools for evaluating ... Read Answer >> 
Why do shareholders need financial statements?
Discover the importance of a company's financial statements for stock shareholders in evaluating their equity investment ... Read Answer >> 
What role does ratio analysis play in valuing a company?
Learn about the role of ratio analysis in determining company value, including some of the most common ratios used by modern ... Read Answer >> 
How do stock dividends affect the retained earnings account?
Understand the difference between financial ratio analysis and accounting ratio analysis. Learn why ratio analysis is important ... Read Answer >> 
What are the advantages and disadvantages of zerobased budgeting in accounting?
Learn how the information ratio is calculated as a riskadjusted measure of performance, and understand how it seeks to differentiate ... Read Answer >> 
What is the difference between efficiency ratios and profitability ratios?
Learn about efficiency and profitability ratios, what these ratios measure and the main difference between efficiency and ... Read Answer >>