Investors are often interested in a manager’s risk as related to performance. How was performance achieved? Was the manager rewarded for risk taken? As a result, many of StyleADVISOR’s graphs and tables show performance and risk together. StyleADVISOR offers a variety of risk measures, allowing users to create a complete risk profile for managers. Here we look at StyleADVISOR’s Risk Return and Upside Downside Graphs.
Risk versus Return
StyleADVISOR’s Risk Return graph displays standard deviation, beta or tracking error as the risk statistic. Users can select the measure that they deem most important, or all three risk statistics can be used side-by-side to get a better feel for the risk of the manager.
Upside / Downside
One very intuitive way of measuring risk is looking at how much a manager falls when the market makes a down move (the downside capture) and the amount a manager goes up in an up market (the upside capture). StyleADVISOR's unique Upside/Downside Market Capture shows this information in easy-to-read graph and tables.
A manager who goes up more than the benchmark in an up market plots above the horizontal line. A manager that goes down less than the benchmark in a down market plots to the left of the vertical line.
|
