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Sharpe-like Metric

A Sharpe-like metric is a stability-adjusted performance measure (mean over variability). For forecasts, it can summarize average skill relative to volatility across windows.

Definition

A Sharpe-like metric is any measure that compares average performance to variability, inspired by the Sharpe ratio in finance. In forecasting, you might use it to describe how stable your score is over time.

Example idea

If you compute Brier skill score on a monthly rolling basis, you can summarize:

• average monthly BSS

• variability of monthly BSS

A stability-adjusted view helps distinguish consistent skill from one-off spikes.

Important note

This is not a standard forecasting term, so if you include it, define your exact method in methodology to avoid confusion.

Related

This concept connects to rolling window evaluation and to performance reporting for leaderboards.