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stats_sharpe-ratio

Read-onlyIdempotent

Compute the annualized Sharpe ratio from periodic returns. Provide returns, risk-free rate, and annualization factor to obtain risk-adjusted performance metrics.

Instructions

Standalone Sharpe ratio from a returns series.

Use when computing the Sharpe ratio from a return series. Provide returns and risk-free rate. Returns: annualized Sharpe ratio, annualized return, annualized volatility, and risk-adjusted metrics.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
returnsYesArray of periodic returns
risk_free_rateNoAnnual risk-free rate
annualization_factorNoTrading days per year
Behavior2/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare readOnlyHint, idempotentHint, and destructiveHint. Description adds minimal behavioral context beyond stating output metrics; lacks details on data requirements or edge cases.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Two sentences, no waste. Clearly front-loaded with purpose and usage instruction.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness3/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Adequate for a simple tool. Lacks mention of minimum returns array length (minItems:5) from schema, but schema covers it. Output summary is present.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema coverage is 100%. Description mentions 'Provide returns and risk-free rate' but does not elaborate beyond schema. Output description is helpful but not parameter-specific.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose4/5

Does the description clearly state what the tool does and how it differs from similar tools?

Clearly states it computes the Sharpe ratio from a return series and lists output metrics. However, it does not explicitly distinguish from sibling tools like stats_probabilistic-sharpe.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Explicitly says 'Use when computing the Sharpe ratio from a return series', providing clear usage context. Does not mention when not to use or list alternative tools.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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