Risk ratio

Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia.

Risk Ratio

An analysts' estimate of the likelihood that a security will increase or decrease in price by a certain amount. For example, if a security currently trades at $50, but an analyst believes it could increase $30 but could also decrease $10, the security is said to have a risk ratio of 3:1.

Risk ratio.

Some investors and financial analysts try to estimate the risk an investment poses by speculating on how much the investment is likely to increase in value as opposed to how much it could decline.

For example, a stock priced at $50 that analysts think could increase to $90 or decrease to $30 has a 4:2 risk ratio, because they estimate the stock could go up $40 but down $20.

Critics point out that it is impossible to provide an accurate estimate of future prices, rendering risk ratios meaningless.

Mentioned in ?
References in periodicals archive ?
Risk ratio for emergency department (ED) visit outcomes per interquartile range (IQR) of the oxidative potential of water-soluble [PM.
The percent of Caucasian students identified as having ED was not correlated with the child poverty risk ratio for either African-American or Hispanic children.
Risk ratios could be calculated only for districts in which students identified as White were identified in the target category because their risk served as the denominator in the risk ratio.
Simulation 4 has no established standard for the ARR because the nominal risk ratio is limited by ceiling effects at the upper end of the distribution.
Further, the risk ratios you show make no sense to me, and I cannot mathematically figure how you got those numbers.
The risk ratio should be treated as related to the fact probability rather than the belief probability.
The statistical power depends on several factors, including the prevalence of the abnormal tumor marker, the risk ratio to be detected, and the number of clinical failures (deaths, disease progressions, etc) observed.
While cancer mortality is lower for Arabs than for Jews, age adjusted rates for cancer incid ence show that the Relative Risk Ratio of Jews as compared to Arabs is much higher than the Relative Risk Ratio for cancer mortality.
Major finding: Higher SF-SPQ score was significantly associated with an increase in the risk of preeclampsia (adjusted risk ratio, 1.
Major finding: Overweight and obese patients who were metabolically healthy had similar mortality and cardiovascular outcomes as metabolically healthy normal-weight patients in an initial analysis; but when the analysis was confined to studies with at least 10 years of follow-up, the metabolically healthy obese group had increased mortality and CV risk, with a risk ratio of 1.
We saw a diminishing risk ratio and at this point, close to 15 years after we started the UKPDS, there appears to be no evidence of harm.