How do I measure the performance of my investments?

To measure the performance of your investments, there are several metrics you can use depending on your investment goals and portfolio. Here are some common performance metrics:

1. Return on investment (ROI): This is the percentage gain or loss of an investment over a specific period. It takes into account the investment's initial cost and the gain or loss made.

2. Annualized return: This is the average rate of return of an investment over a specified period.

3. Sharpe ratio: This measures the riskadjusted return of an investment. It takes into account the investment's return and the level of risk taken to achieve that return.

4. Standard deviation: This measures the volatility of an investment's returns over time. It gives an idea of the risk associated with an investment.

5. Beta: This measures the correlation of an investment's returns with the overall market's returns. It gives an idea of the investment's market risk.

6. Alpha: This measures the excess return of an investment compared to its expected return based on its beta. It gives an idea of the investment's outperformance relative to the market.

It's important to note that these metrics are just tools to help you assess the performance of your investments. They should be used in conjunction with other factors such as your investment goals, risk tolerance, and overall portfolio diversification.