Absolute and relative returns are two terms that are frequently used in the investing world to evaluate performance, make investment decisions, and conduct operations in general.

Relative performance is the comparison of your portfolio’s returns to those of some benchmark index. Absolute performance is the return of the portfolio itself on a year-over-year basis.

Absolute Income: Definition, vs. Relative, Importance By Lyle Daly – May 1, 2025 at 1:41PM Fact-checked by Frank Bass ...