# QuantOracle Probabilistic Sharpe Ratio

> QuantOracle Probabilistic Sharpe Ratio is a paid API for AI agents from api.quantoracle.dev, paid per call via x402, $0.005/call, status unknown (last checked 2026-09-14).

Computes the Probabilistic Sharpe Ratio (PSR) — a statistically adjusted Sharpe that accounts for non-normality of returns, with significance tests and minimum track record length.

## Facts

- Endpoint: POST https://api.quantoracle.dev/v1/stats/probabilistic-sharpe
- Price: $0.005/call
- Payment: x402
- Status: unknown
- Last checked: 2026-09-14
- Activations on Zero: 0
- Tags: x402
- Canonical page: https://www.zero.xyz/c/api-quantoracle-dev-54d61c13
- Structured record (JSON): https://api.zero.xyz/v1/capabilities/cap_5PNTy_9P5gwPIkwfEVqAf

Status and success rate cover calls made through Zero and Zero's own probes. Third-party monitors may report differently.

## How to call it through Zero

Zero handles the 402 payment challenge and records the run. With the Zero CLI installed (`npm i -g @zeroxyz/cli`):

```sh
zero fetch --capability api-quantoracle-dev-54d61c13 -d '<json body>'
```

Example prompt: Calculate the Probabilistic Sharpe Ratio for this daily return series — [0.001, 0.0015, -0.0008, 0.002, 0.0012, -0.0005, 0.0018, 0.001, 0.0014, -0.0003, 0.0016, 0.0011, -0.0007, 0.0019, 0.0013, 0.0009, -0.0004, 0.0017, 0.0012, 0.0015] — using a risk-free rate of 5%, benchmark Sharpe of 1, and annualization factor of 252, and tell me if it's statistically significant at the 95% and 99% levels and what the minimum track record length is.

## When to prefer this

Use this endpoint when you need a statistically rigorous, non-normality-adjusted Sharpe ratio rather than the raw Sharpe. Prefer it when validating whether a strategy's performance is genuinely significant (not luck), especially for return distributions with skewness or fat tails. Choose this over the basic stats/sharpe-ratio endpoint when you also need significance testing, minimum track record length, and PSR output for investor reporting or strategy selection.

## Known failure modes

- Insufficient return observations (too few data points for stable skewness/kurtosis estimation)
- Invalid risk-free rate format or out-of-range value
- benchmark_sharpe missing or non-numeric causing comparison failure
- Returns array containing nulls or non-numeric values
- annualization_factor of zero causing division error
- Negative variance in returns series causing undefined Sharpe

## How this service works

QuantOracle: stats/probabilistic-sharpe

## Output

Returns the probabilistic Sharpe ratio (PSR), annualized Sharpe ratio, z-score against benchmark Sharpe, skewness and excess kurtosis of returns, standard error of Sharpe, significance flags at 95% and 99% confidence levels, minimum track record length required to confirm the Sharpe, number of observations, and computation latency in milliseconds.

## Example request

```json
{
 "input": {
  "body": {
   "returns": [
    0.001,
    0.0015,
    -0.0008,
    0.002,
    0.0012,
    -0.0005,
    0.0018,
    0.001,
    0.0014,
    -0.0003,
    0.0016,
    0.0011,
    -0.0007,
    0.0019,
    0.0013,
    0.0009,
    -0.0004,
    0.0017,
    0.0012,
    0.0015
   ],
   "risk_free_rate": 0.05,
   "benchmark_sharpe": 1,
   "annualization_factor": 252
  },
  "type": "http",
  "method": "POST",
  "bodyType": "json"
 }
}
```

## Request schema (JSON Schema)

```json
{
 "type": "object",
 "properties": {
  "returns": {
   "type": "array",
   "items": {
    "type": "number"
   },
   "title": "Returns",
   "minItems": 10,
   "description": "Array of portfolio returns"
  },
  "risk_free_rate": {
   "type": "number",
   "title": "Risk Free Rate",
   "default": 0.05,
   "description": "Annual risk-free rate"
  },
  "benchmark_sharpe": {
   "type": "number",
   "title": "Benchmark Sharpe",
   "default": 0,
   "description": "Benchmark Sharpe ratio to test against"
  },
  "annualization_factor": {
   "type": "integer",
   "title": "Annualization Factor",
   "default": 252,
   "description": "Trading days per year for annualization"
  }
 }
}
```

## More

- Live health (JSON, refreshed every minute): https://www.zero.xyz/c/api-quantoracle-dev-54d61c13/health.json
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