latamen

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: invisible layers surface to deliver attractive returns
Quantitative investing: invisible layers surface to deliver attractive returns
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Looking under the bonnet of passive thematic indices
Looking under the bonnet of passive thematic indices
Passive thematic indices effectively trade against quant investors due to their generally negative exposures to factors.
12-10-2021 | Insight
What valuations and interest rates tell us about equity factors
What valuations and interest rates tell us about equity factors
Single and multi-factor equity portfolios are currently very attractively valued and factor premiums persist across interest rate cycles.
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Momentum is a self-fulfilling prophecy and therein lies its strength
Momentum is a self-fulfilling prophecy and therein lies its strength
The Momentum premium arises from mistakes in human reasoning.
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