# Overview

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The **CandelaCharts – Calmar Ratio** is a premium risk-adjusted performance metric that evaluates an asset's efficiency by comparing its Compound Annual Growth Rate (CAGR) to its Maximum Drawdown.&#x20;

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[features](https://docs.candelacharts.com/investing/risk-adjusted-performance/calmar-ratio/features)
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{% content-ref url="usage" %}
[usage](https://docs.candelacharts.com/investing/risk-adjusted-performance/calmar-ratio/usage)
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[confluences](https://docs.candelacharts.com/investing/risk-adjusted-performance/calmar-ratio/confluences)
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[faqs](https://docs.candelacharts.com/investing/risk-adjusted-performance/calmar-ratio/faqs)
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Unlike the Sharpe Ratio, which uses volatility as the risk measure, the Calmar Ratio focuses on the "pain" of drawdowns, making it a highly practical tool for long-term investors and capital preservation strategies.