# Risk-Rated Return Calculator AI Agent Connect

> Evaluate farm investment efficiency using Sharpe and Sortino ratios.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_KYO6WuPJhqnmJzarGj2Y3ATSJUIKs0diO4CkaEdy/ai-agent-connect
- **Tags:** portfolio-theory, risk-management, farming, sharpe-ratio, investment-analysis

## Description

This MCP server provides specialized financial analysis tools for agricultural investors. It allows AI agents to calculate key metrics like the Sharpe ratio and Sortino ratio to determine if a farm project's returns justify its volatility. Users can evaluate how a new investment impacts their existing portfolio's risk and return profile using `evaluate_portfolio_impact`, compare multiple projects with `compare_investment_alternatives`, and assess specific downside risks with `analyze_downside_exposure`. It is designed to bridge the gap between complex portfolio theory and practical farm management decisions.

## Tools

### analyze_downside_exposure
Analyze the intensity of downside risk

### calculate_investment_metrics
Calculate key investment metrics like Sharpe ratio and Sortino ratio

### compare_investment_alternatives
Rank multiple investment alternatives by efficiency

### evaluate_portfolio_impact
Evaluate how a new investment affects the existing portfolio

## Prompt Examples

**Prompt:** 
```
Calculate the efficiency of an investment with a 12% expected return, 5% standard deviation, and a 3% risk-free rate. Use a target return of 2%.
```

**Response:** 
```
The investment has a Sharpe ratio of 1.8 and a Sortino ratio of 2.1. The coefficient of variation is 0.417.
```

**Prompt:** 
```
I have a portfolio with a 7% return and 4% volatility. If I add a new project with a 10% return and 6% volatility that has a 0.3 correlation, what will my new portfolio look like? The weight for the new project is 25%.
```

**Response:** 
```
The combined expected return of your portfolio will be 7.75% and the combined volatility will be 4.18%.
```

**Prompt:** 
```
Rank these three projects: Project A (10% return, 5% volatility), Project B (15% return, 10% volatility), and Project C (8% return, 3% volatility). The risk-free rate is 2%.
```

**Response:** 
```
1. Project C (Sharpe: 2.0), 2. Project A (Sharpe: 1.6), 3. Project B (Sharpe: 1.3).
```

## Frequently Asked Questions

**How can I compare two different farm projects?**
You can use the `compare_investment_alternatives` tool. Provide a list of the projects with their expected returns and standard deviations, and the tool will rank them by their Sharpe ratio.

**What is the difference between Sharpe and Sortino ratios in this tool?**
The Sharpe ratio measures excess return per unit of total risk, while the Sortino ratio specifically focuses on downside risk, penalizing only the volatility that falls below your target return.

**Can I see how a new crop investment affects my current portfolio?**
Yes, the `evaluate_portfolio_impact` tool calculates the new combined return and volatility of your portfolio after accounting for the correlation between the new investment and your existing assets.