# Sharpe Ratio Calculator MCP for AI Agents AI Agent Connect

> Sharpe Ratio Calculator lets you turn raw investment data into clear, risk-adjusted performance metrics. It handles the math for Sharpe, Sortino, and Calmar ratios across single assets and entire portfolios. Use it to see if your returns actually justify the risk you're taking in different markets like the USA, Europe, or Brazil.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_M46qVve6IXIKg2trMJwQRor0XcUuY6YOmYnUBbaR/ai-agent-connect
- **Tags:** finance, risk, sharpe-ratio, volatility, investment

## Description

This Connector lets you turn raw investment data into clear, risk-adjusted performance metrics without touching a spreadsheet. Instead of manually hunting for the latest risk-free rates for the USA, Europe, or Brazil, you can just ask your agent to pull them for you. It takes a series of periodic returns and handles the heavy math to determine your Sharpe, Sortino, and Calmar ratios. It even categorizes your results into a performance tier, so you know immediately if your returns are Poor, Good, or Excellent based on the risk you took.

Whether you're looking at a single asset or a complex portfolio with specific weightings, the tool calculates the weighted aggregate metrics you need to see the full picture. It removes the friction of copy-pasting data between tabs and lets you focus on making better investment decisions. It's a huge time saver for anyone who needs to move from raw data to actionable insights in seconds. Finding this in the Vinkius catalog makes it easy to plug into your existing workflow and get professional-grade analysis without the headache of manual calculation. You get a clear, honest look at your investment quality by seeing exactly how much return you're getting for every unit of risk.

## Tools

### calculate_risk_adjusted_ratios
Calculate Sharpe, Sortino, Treynor, and Information ratios

### calculate_volatility_and_drawdown
Calculate annualized return, volatility, and max drawdown

### get_periodic_constants
Get standard period constants

## Prompt Examples

**Prompt:** 
```
What's the current risk-free rate for the USA?
```

**Response:** 
```
The annualized risk-free rate for the USA market is **5.33%**.
```

**Prompt:** 
```
Calculate metrics for these monthly returns in Brazil: [0.02, -0.01, 0.03, 0.01, -0.02]
```

**Response:** 
```
For the provided returns in Brazil, here are the risk-adjusted metrics:

*   **Sharpe Ratio:** 1.45
*   **Sortino Ratio:** 1.82
*   **Calmar Ratio:** 2.10

**Performance Tier:** Good
```

**Prompt:** 
```
Analyze a portfolio with two assets: Asset A (returns [0.05, 0.02], weight 0.6) and Asset B (returns [0.01, -0.01], weight 0.4) in the Europe market.
```

**Response:** 
```
The aggregate portfolio metrics for the Europe market are:

*   **Sharpe Ratio:** 1.25
*   **Sortino Ratio:** 1.40
*   **Calmar Ratio:** 1.85
```

## Capabilities

### Get current risk-free rates
Retrieve the latest annualized risk-free rates for the USA, Europe, or Brazil markets.

### Calculate Sharpe ratios
Determine the risk-adjusted return for a single series of periodic returns.

### Compute Sortino ratios
Analyze downside risk by calculating the Sortino ratio for your asset series.

### Determine Calmar ratios
Measure your return relative to the maximum drawdown using the Calmar ratio.

### Assign performance tiers
Get an automatic classification of your results as Poor, Good, or Excellent.

### Aggregate portfolio metrics
Compute weighted aggregate performance metrics for a collection of multiple assets.

## Use Cases

### Evaluating a new volatile asset
A portfolio manager wants to know if a new crypto asset is worth the volatility. They ask the agent to calculate the Sharpe ratio for the last 12 months of returns.

### Reporting on a European fund
A financial analyst needs to report on a European fund. They use the tool to get the current ECB risk-free rate and then calculate the fund's Sortino ratio.

### Analyzing a 60/40 portfolio
A retail investor wants to see if their 60/40 portfolio is actually performing well. They provide the asset weights and returns to get a weighted aggregate metric.

### Categorizing a trading strategy
A hedge fund intern needs to categorize a series of returns. They use the tool to get an official performance tier for a specific trading strategy.

## Benefits

- Stop manual math: Use `calculate_asset_metrics` to instantly get Sharpe and Sortino ratios instead of using complex spreadsheets.
- Get accurate benchmarks: `get_market_benchmark` automatically pulls the latest risk-free rates for the USA, Europe, or Brazil.
- See the big picture: Use `calculate_portfolio_metrics` to see how different assets affect your total portfolio risk when weighted.
- Instant grading: The tool provides a performance tier (Poor, Good, Excellent) so you can judge your results immediately.
- Multi-market analysis: Easily compare investment quality across different geographic regions using consistent calculation methods.

## How It Works

The bottom line is you get instant, accurate risk-adjusted metrics without touching a calculator.

1. Provide your agent with a list of periodic returns and the target market.
2. The Connector pulls the relevant risk-free rate and calculates the ratios.
3. You get a breakdown of risk-adjusted metrics and a performance grade.

## Frequently Asked Questions

**Can the Sharpe Ratio Calculator find the current risk-free rate?**
Yes, it pulls the current annualized risk-free rate for the USA, Europe, and Brazil markets automatically so you don't have to look them up.

**How do I calculate the Sortino ratio for my investments?**
You can provide your return data to the agent, and it will use the tool to calculate the Sortino ratio, which specifically measures downside risk.

**Can this tool analyze a whole portfolio at once?**
Yes, it can compute weighted aggregate metrics for a collection of assets if you provide the individual returns and their respective weights.

**What is a performance tier?**
The tool evaluates your returns against market context to give you a clear label like Poor, Good, or Excellent, helping you judge your success at a glance.

**Does it work for different countries?**
It supports fetching benchmarks for the USA, Europe, and Brazil, making it useful for global investment analysis.

**Is it better than just looking at total returns?**
Yes, because it shows you how much return you're getting for every unit of risk you take, which is vital for making smart, informed investment decisions.

**What markets are supported for risk-free rate retrieval?**
The `get_market_benchmark` tool currently supports the USA (Federal Funds Rate), Europe (ECB rate), and Brazil (Selic rate).

**How is investment performance classified?**
Performance is categorized into three tiers: Poor (ratio  2.0).

**Can I calculate metrics for a group of assets at once?**
Yes, use the `calculate_portfolio_metrics` tool by providing a JSON string containing the returns series and weights for each asset in your portfolio.

**What metrics can I calculate?**
You can calculate the Sharpe Ratio, Sortino Ratio, Treynor Ratio, Information Ratio, annualized return, annualized volatility, and maximum drawdown using `calculate_risk_adjusted_ratios` and `calculate_volatility_and_drawdown`.

**How should I format the returns input?**
Returns should be provided as an array of decimal numbers. For example, a 1% return should be entered as 0.01.

**What are the supported annualization periods?**
The server uses standard financial constants: 252 for daily, 52 for weekly, and 12 for monthly. You can retrieve these using `get_periodic_constants`.