Metric guide
Growth relative to the worst drawdown
CAGR/Drawdown Ratio compares long-term growth with the worst matching drawdown. It asks whether the asset’s compounding story was worth the deepest pain investors had to survive.
This ratio is strong because it forces growth and damage into the same frame. An asset can look brilliant on return alone and still score weakly here if the historical collapse was too severe.
Technical definition, calculation notes and sources stay available here without dominating the explanation.
This metric combines growth and risk in a single ratio.
It relates the long-term growth rate (CAGR) to a matching reference drawdown (dd_ref) based on available history.
An asset can grow strongly, but if it required enduring large historical drawdowns, the ratio will look worse.
The higher the ratio, the more “robust” the growth looks relative to the worst setback.
Use the ranking after the explanation, not as a standalone investment signal.
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