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Downside risk

Downside risk in financial terms is the chance of an unexpected and undesirable event occurring that will impair the value of an investment.

As far as possible, investors will clearly wish to avoid any risk that is not offset by a reward in the form of extra return.

It is important to note that volatility is not the same as downside risk. Volatility in the financial markets is the degree of fluctuation in the price of a stock or financial product such as a stock index or a currency. As price fluctuations can be either downward or upward movements, volatility also includes upside risk.

Quantitative investing
Quantitative investing

We’ve been leading the way in quant investing for over 25 years, turning research into practical solutions.

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New study reveals: you can predict when interest rates will rise
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Over the past decades, many empirical studies have examined the predictability of interest rates, so far with mixed results.
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Data sets - the idiosyncratic momentum factor
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A research-driven approach is at the core of everything we do.
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Factor investing debates: Should you time your factor exposures?
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The debate on whether investors should tactically time their factor exposures is almost as old as the discovery of factors.
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