The Sharpe Ratio Explained (by a quant trader)

An intro to quant research and trading through the lens of Sharpe Ratios. Full course on how to become a wall street quant: https://thewallstreetquants.com/?el=srvid ? Learn how to build quant strategies like the hedge funds ? Get access to hundreds of quant interview questions explained ? Get your quant resume edited by a Wall Street quant ? Meet quants and network ? Instagram: https://www.instagram.com/thewallstreetquants 00:00 Intro 00:33 Why investing is not only about returns 02:43 Quantifying risk with volatility 03:48 Sharpe ratio formula 05:04 Does the Sharpe ratio "work"? 05:57 What's a good Sharpe ratio? 06:26 Diversification and hedging 08:31 Would you rather invest in high SR or high returns? 09:09 How leverage works 10:44 Leverage for quant trading 12:58 Statistical justification for the Sharpe ratio 14:21 Academic justification for the Sharpe ratio 14:54 Conclusion #quant #sharpe #algotrading