Sentences with phrase «about volatility of returns»

Such an investor cares greatly about volatility of returns, as the more volatile return streams increase the chances of being a forced seller at a very disadvantageous price for the portfolio.

Not exact matches

When SPY's 20 - day realized volatility is above 20 %, the tail risks of overnight returns are about the same as those of close - to - close returns.

In their May 2012 paper entitled «Adaptive Asset Allocation: A Primer», Adam Butler, Michael Philbrick and Rodrigo Gordillo backtest a progression of strategies culminating in an Adaptive Asset Allocation (AAA) strategy that incorporates return predictability from relative momentum (last 120 trading days, about six months), volatility predictability from recent volatility (last 60 trading days) and pairwise correlation predictability from recent correlations (last 250 trading days).

Assuming a slightly higher volatility of 30 percent - about the risk of many 401K portfolios, say the authors - the chance of a negative return increases.

That extra bit of return beyond about a 10 year term isn't worth the volatility, especially in the part of your portfolio that is there to dampen overall volatilty.

Monday February 12: Five things the markets are talking about Investors are bracing for another bumpy ride this week after market volatility has returned with a vengeance, delivering the biggest rout in global stocks in a number of years.

The 2010 Best of the Hot List includes articles about why style and size based investing will often serve to limit returns, how emotion and discipline during times of market volatility are key to long term performance, and why the stock market and economy are two different animals and can often behave differently.

Each of these strategies varies in the types of returns they generate and in their expected volatility, as you are about to see.

But people in the real world don't worry about volatility or demand a premium return to bear it; what they care about is the likelihood of losing money.

As currency volatility can have a significant impact on the total return of an international investment, thinking about how to potentially insulate a portfolio from such currency ups and downs is more important than ever.

Overall, Strategic Total Return presently holds about 14 % of assets in precious metals shares - still a constructive position in light of continued favorable conditions, but restrained enough to accept the possibility of short - term volatility without much worry.

While covered - call strategies appear to promise «a free lunch» of increased returns with less risk, investors who care about more than the volatility of returns will not find this an efficient strategy.

Recent market volatility shouldn't be enough to threaten the economic cycle, but does it temper optimism about the return potential of risk assets?

The fund's standard deviation, a measure of volatility of returns, was about 0.5 % higher than that of the reference ETF portfolio.

At about 13.6 %, the fund's standard deviation (a measure of volatility of returns) was only 0.2 % higher than that of the reference portfolio.

As you can see, the volatility of returns in Canada and the US has been about 50 % lower in the last three and five years than it was during the past two decades.

We can now say that Berkshire Hathaway has a historical return volatility of about 16 %.

That translates to receiving about 60 % of the returns of an all - equity portfolio with about 25 % of the volatility.

Investors may prefer dividend paying equities because dividends are historically responsible for about half of long - term total stock returns, because dividend payers tend to be established and stable businesses, or because dividend stocks experience lower volatility than non-dividend payers.

At 15.1 %, the fund's standard deviation, a measure of volatility of returns, was about 2.4 % higher than that of the reference ETF portfolio.

Given the relationship between high volatility and low returns, it's not surprising that investments made during periods of lower volatility outperform over short holding periods (up to about 11 months).

Since we are talking about using the past volatility of a stock to predict its future return, the failure of the risk - return trade - off may be because volatility reverses.

??? On this web site, get everything about those portfolios for FREE: you will find a description, the current holdings, the compounded returns, the sector mix, the volatility rating and the historical orders since the inception of each portfolio.

The couple is hoping to make about 4 % average annual net returns with a minimum of volatility and risk.

Included in such funds are the kinds of companies I discussed in an article about stocks Warren Buffett might buy; stocks with wide moats, strong financial positions, and product lines that sell just as well in recession as they do in periods of strong economic growth.A low volatility ETF is an easy way to get exposure to stock - like returns without the crazy up and downs.

Compared with the cap - weighted index, the US MV portfolios have about 25 % less volatility and a return advantage of 134 — 182 basis points (bps).

The fund cumulatively returned about 9.1 % more than its reference ETF portfolio of a slightly lower volatility.

The higher the number, the greater the volatility; for a stock fund that has an average annual return of 12 % and a standard deviation of 20 %, you can expect to earn between 32 % and -8 % in about two out of every three years.

The fund's volatility, measured as an annualized standard deviation of monthly returns, was about 10 % above that of the reference portfolio.

This strategy would have put you in cash about 47 % of the time, so if our switches were random, we'd expect to earn about half the market return with half the volatility.

In their May 2012 paper entitled «Adaptive Asset Allocation: A Primer», Adam Butler, Michael Philbrick and Rodrigo Gordillo backtest a progression of strategies culminating in an Adaptive Asset Allocation (AAA) strategy that incorporates return predictability from relative momentum (last 120 trading days, about six months), volatility predictability from recent volatility (last 60 trading days) and pairwise correlation predictability from recent correlations (last 250 trading days).

An investment in the S&P 500 Index at present levels is likely to achieve a nominal total return of about 4.4 % annually over the coming decade, and investors will have to tolerate a great deal of volatility in pursuit of that return.

The head of the Canada Pension Plan Investment Board sounded optimistic Friday about opportunities that may arise out of the recent return of volatility to markets.

Notice, minimum volatility in the lower corner with an annualized risk of about 11.75 % and annualized return of just over 11 %, only slightly better than the market.

While I think it's reasonable to lower your expectations for bond market returns and allow for higher volatility because of the level of rates, it seems to me that many of the fears about fixed income are overblown.

One of our biggest influences is Warren Buffett, who stresses that predictions about the future should be based on an understanding of economic fundamentals and human nature, not on historical returns, correlations and volatilities.

Retail investors don't care about that but they look at the return series, and analyze whether the volatility is too great or too small for them, and if they have beaten many of their peers.

When talking about «low volatility products,» Yasenchak is referring to portfolios that «specifically seek benchmark - like returns, over the full market cycle, with a total volatility, measured as the standard deviation, falling considerably below that of the index.»

Assuming a slightly higher volatility of 30 percent - about the risk of many 401K portfolios, say the authors - the chance of a negative return increases.

Similar to the stock diversification example in Article 7.1, there is a «tangency portfolio» of about 20 % stocks and 80 % bonds that historically has moderately boosted portfolio returns while adding little additional volatility.

The portfolio of half Canadian and half US stocks returned more than that average — about 10.3 % — and with significantly lower volatility than either of the two countries individually.

Typically they'll do about 100 passes over the plan to get a sense of its probable risk versus growth - potential versus volatility, and tweak the plan until the normal volatility is within the range you've said you're comfortable with while trying to produce the best return with the least risk.

To obtain greater stock returns, the trade - off is suffering significant short - term volatility, such as that investors experience first - hand every day, with about 49 % of daily returns being negative.

Holding an diversified investment portfolio comprised of asset classes with healthy correlations to each other is just about the only way to reduce risk and volatility, while still realizing the returns that have any chance of outperforming the markets, enough of the time.

The revised statement of investment strategy doesn't mention volatility but, instead, talks about «an appropriate return - to - risk trade - off» and warns of the prospect of frequent trading.

Even so, by investing in markets only when they are truly cheap (> median real earnings yield) and holding cash otherwise, investors would have generated about 70 % of the total return to stocks with less than half the volatility and 73 % lower drawdowns since 1934.

At about 15 %, the fund's volatility, measured by an annualized standard deviation of monthly returns in the entire analysis period, was slightly lower than that of the overall stock market.

Lendedu explains the results of the poll shows quite a few investors are not worried about bitcoin's price volatility, and are willing to gamble returns from bitcoin will pay off credit card debt.