Calculate_Sharpe_ratio.py

mean_strategy_return = aapl_data['Strategy_Return'].mean()
std_dev_strategy_return = aapl_data['Strategy_Return'].std(ddof=1)

# ddof=1 or Delta Degrees of Freedom for sample standard deviation

# Annual risk-free rate
annual_risk_free_rate = 0.05

# Convert annual risk-free rate to daily rate
daily_risk_free_rate = annual_risk_free_rate / 252

# Calculate Sharpe Ratio with daily risk-free rate
excess_return = aapl_data['Strategy_Return'] - daily_risk_free_rate
sharpe_ratio = np.sqrt(len(aapl_data)) * (mean_strategy_return / std_dev_strategy_return)

print(f"Sharpe Ratio with daily risk-free rate: {sharpe_ratio}")