I have a pairs strategy that I am trying to calculate the sharpe ratio for. Currently I am using python for my analysis and calculation. I have a dataframe that contains the cumulative returns in $'s for each day. I am confused on how to convert this information into something that I can calculate the sharpe ratio from.
Could anyone point me in the right direction on how to use cumulative returns (in $'s) to find the sharpe ratio? Any help is appreciated! Thanks