Risk-adjusted performance

Risk-Adjusted Performance

The performance of a security or investment relative to its risk. One may calculate the risk-adjusted performance in a number of ways. One may consider the investment's volatility. Alternatively, one may compare its performance to the performance of the market as a whole or relative to securities or investments with similar levels of risk.

Risk-adjusted performance.

When you evaluate an investment's risk-adjusted performance, you aren't looking simply at its straight performance figures but at those figures in relation to the amount of risk you took (or would have taken) to get the return the investment produced.

One method is to investigate the investment's price volatility over various periods of time, including different market environments.

For example, you might consider how far the price fell in the most recent bear market against its price in a bull market, or how it performed in a recent market correction. In general, the greater the volatility, the greater the risk.

However, many analysts believe that looking exclusively at past performance can be deceptive in evaluating the risk you are taking in making a certain investment, since it can't predict what will happen in the future.

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The Thomson Reuters Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.
The Cavanal Hill Opportunistic Fund, Institutional earned the award for superior risk-adjusted performance versus its 6 peers in the Absolute Return category for the five-year period ended Nov.
The Lipper Fund Awards recognize funds that have excelled in providing consistently strong risk-adjusted performance relative to their peers.
The Fundata FundGrade A+(r) Rating is awarded on an annual basis, and identifies funds which have generated strong risk-adjusted returns, calculated using a number of risk-adjusted performance ratios, relative to their peers.
It also compared the risk-adjusted performance of funds with different analyst ratings to the average capital asset pricing model (CAPM) alpha.
Identified for consistently maneuvering through volatile market conditions with intelligent foresight to finally deliver considerable risk-adjusted performance, Burgan Equity Fund enjoys a balanced investment policy which aims at long term capital gains with minimum possible risk.
They highlight funds that excel in delivering consistent, strong risk-adjusted performance.
The study found that the average, net of fee, risk-adjusted performance of these managers over the ten years of our sample was attractive compared to similar values calculated for wider samples of the manager population.
The Lipper Awards were based on best risk-adjusted performance for periods ended July 31, 2015 and 2014, respectively.
TIAA Investments was named the ThomsonReuters Lipper Best Large Fund Company in 2016 for the fourth year in a row, based on risk-adjusted performance.
Risk-adjusted performance and bank governance structures.
The Lipper Fund Awards program honors funds that have excelled in delivering consistently strong risk-adjusted performance, relative to peers.

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