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stats_sharpe-ratio

Read-onlyIdempotent

Calculate the Sharpe ratio from a returns series to measure risk-adjusted investment performance, supporting custom risk-free rates and annualization factors.

Instructions

Standalone Sharpe ratio from a returns series.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
returnsYesArray of periodic returns
risk_free_rateNoAnnual risk-free rate
annualization_factorNoTrading days per year
Behavior3/5

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

Annotations already declare readOnlyHint=true and idempotentHint=true, covering the safety and determinism profile. The description adds the term 'Standalone,' which minimally suggests it returns a single value rather than a complex object, but provides no details on calculation methodology, error handling (e.g., zero variance), or return format.

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?

The description consists of a single, efficient sentence with no redundant words or filler. It is appropriately front-loaded for a simple calculation tool, though the brevity sacrifices some explanatory detail.

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?

Given the tool's low complexity (single mathematical calculation) and rich schema (100% coverage), the description is minimally adequate. However, it lacks mention of what the tool returns (a numeric ratio), the concept of risk-adjusted returns, or how to interpret the result, which would be helpful given the absence of an output schema.

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?

With 100% schema description coverage, the baseline is 3. The description does not mention parameters at all, offering no additional context beyond the schema (e.g., explaining that returns should be in decimal form, or that risk_free_rate should match the annualization_factor period).

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

Purpose3/5

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

The description identifies the resource (Sharpe ratio) and input (returns series) but lacks an explicit action verb (e.g., 'Calculate'). It reads as a noun phrase ('Standalone Sharpe ratio...') rather than stating what the tool does, leaving the action implied rather than explicit.

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

Usage Guidelines2/5

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

No guidance provided on when to use this tool versus siblings like 'stats_realized-volatility', 'risk_portfolio', or 'risk_kelly'. The description does not indicate prerequisites (e.g., minimum data requirements, though minItems: 5 is in schema) or when this metric is preferred over other risk-adjusted measures.

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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