Sentences with phrase «reduces volatility of returns»

Diversification reduces overall investment risk and reduces volatility of returns on your investment portfolio as a whole.

The chart below, based on data from the classic book A Random Walk Down Wall Street by Burton Malkiel, shows how adding a third or seventh or fifteenth position to a portfolio materially reduces the volatility of returns.

You can see that through the reduced volatility of returns that you can expect much smaller losses and gains over time than stocks.

Not exact matches

Actual results, including with respect to our targets and prospects, could differ materially due to a number of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up of production of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty returns or the potential recall of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits of the transaction; the risk that retail customers may alter promotional pricing, increase promotion of a competitor's products over our products or reduce their inventory levels, all of which could negatively affect product demand; the risk that our investments may experience periods of significant stock price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization of products under development, such as our pipeline of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development of new technology and competing products that may impair demand or render our products obsolete; the potential lack of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.

The industry got a jolt recently when the California Public Employees Retirement System announced it was lowering its historic 7.5 percent expected rate of return in an effort to reduce volatility in its portfolio caused by reaching for risk.

As you can see when looking at the other asset allocations, adding more fixed income investments to a portfolio will slightly reduce one's expectations for long - term returns, but may significantly reduce the impact of market volatility.

The Funds» use of derivatives may reduce the Funds» returns and / or increase volatility and subject the Funds to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

Before the end of April, when the market started its gut - wrenching descent, «the combination of return generation and risk diversification was part of a broader virtuous circle for fixed income, which also included significant inflows to the asset class and direct support from central banks,» El - Erian writes at the start of his viewpoint, noting that in addition to delivering solid returns with lower volatility relative to stocks, the inclusion of fixed income in diversified asset allocations also helped to reduce overall portfolio risk.

Since the inception of the Fund (as well, of course, in long - term historical tests), our present approach to risk management has both added to returns and reduced volatility - not necessarily in any short period, but over the complete market cycle.

If you assume that a diversified portfolio of US Stocks, International Stocks, Small Capitalization Stocks, and some Bonds will significantly increase returns and reduce volatility you may be surprised to learn, that recently the stock funds are quite highly correlated.

The iShares Currency Hedged ETF's use of derivatives may reduce the funds» returns and / or increase volatility and subject the funds to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

But even those low but positive returns have been able to dramatically reduce the volatility of a balanced portfolio.

Data for the last 60 years demonstrates that adding small stocks, foreign stocks, real estate and emerging - market stocks to a portfolio generally reduces the level of volatility or risk, and at the same time increases the portfolio's return.

At an EU Commission meeting today where the future of the EU dairy sector was discussed, Copa - Cogeca, which represents farmers and their co-operatives in the European Union, called for long - term measures to reduce extreme market volatility and ensure that farmers get a fair return for their produce.

The Fund's use of derivatives may reduce the Fund's returns and / or increase volatility and subject the Fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

The iShares Currency Hedged Funds» use of derivatives may reduce the Funds» returns and / or increase volatility and subject the Funds to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

INC's use of derivatives may reduce the Fund's returns and / or increase volatility and subject the Fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

Take a deeper dive into the Defined Risk Strategy (DRS) and learn how since inception in 1997 this distinct, hedged - equity investment approach has posted an enviable track record of consistent returns with reduced volatility across full market cycles.

Diversifying its assets across multiple asset categories, including dividend - paying stocks, bonds and convertible securities, may help reduce the fund's overall portfolio volatility and improve chances of earning more consistent returns over the long term.

By holding roughly equal amounts of Canadian, U.S. and international stocks, you can reduce the volatility of your portfolio without lowering your expected return.

Also keep in mind that investment with higher returns come with higher risk (both in terms of volatility and risk of complete loss), and that borrowing money to invest is almost always unwise, since the interest paid directly reduces the return without reducing the risk.

In return, they may reduce the volatility of your portfolio, or at least give you a feeling of security.

This serves to reduce the volatility of our results and de-emphasizes market movements as the source of our investment returns.

The imperfect correlations between hedged bonds of different countries could mean that diligent rebalancing could add to returns or reduce volatility.

This reduces risk (volatility) compared to holding one class of assets, but might also hinder potential returns.

Our analysis indicates the potential of a low volatility factor strategy in reducing return volatility in U.S. preferred stocks.

A fund's use of derivatives may reduce returns and / or increase volatility and subject the fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

And the funds did exactly what I wanted them to do: They reduced portfolio volatility without sacrificing much in the way of returns.

The Funds» use of derivatives may reduce the Funds» returns and / or increase volatility and subject the Funds to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

This modification could help reduce drawdowns during periods of high volatility and / or negative market conditions (see 2008 - 2009), but it could also reduce total returns by allocating to cash in lieu of an asset class.

It does benefit, however, from holding healthier underlying companies with reduced instances of delisting (0 vs. 9), which leads to a higher average total return (13.4 % vs. 11.4 %), lower volatility (13.6 % vs. 15.3 %), and higher subsequent five - year dividend growth rate (18.0 % vs. 11.1 %).

Some people also point to specific situations where stock diversification has been shown to reduce or maintain volatility while increasing returns of your overall portfolio to a certain degree.

Diversification will only reduce the volatility of your portfolio's returns down to the level of the total market's own volatility, but your choice of risky assets may predispose you to additional price swings.

One reason focuses on reducing risk in the form of volatility and the other focuses on boosting return performance.

Regardless, this analysis tells us that through diversification, we have the potential to maintain or even reduce our overall stock portfolio volatility while bumping up our rate of return moderately.

Our lineup of 150 alternative ETFs can help you reduce volatility, manage risk and enhance returns.

A diversified portfolio made up of low - cost Vanguard and iShares ETFs would only cost them 0.3 % a year or less, and an asset mix including fixed income, equity, REITs and cash will help reduce volatility and boost returns.

Volatility weighting reduced the overall portfolio volatility in 99 % of cases and gave the highest average Sharpe ratio, although returns were 1.08 % lower than calendar rebalancing oVolatility weighting reduced the overall portfolio volatility in 99 % of cases and gave the highest average Sharpe ratio, although returns were 1.08 % lower than calendar rebalancing ovolatility in 99 % of cases and gave the highest average Sharpe ratio, although returns were 1.08 % lower than calendar rebalancing on average.

The core of our investment philosophy is that excessive returns are rarely realized, and therefore should be traded for the opportunity to generate more stable returns, protect against some market declines, and reduce overall portfolio volatility.

Our wide array of alternative ETFs can help you reduce volatility, manage risk and enhance returns.

When DCA'ing out of stocks, this suggests that reducing the frequency of your sell orders as much as possible is likely to be beneficial (because volatility of stock returns is inversely related to the length of the period of time considered).

Looking back since 1926, having a considerable portion of your portfolio in bonds would reduced volatility without greatly reducing total returns but those conditions no longer exist.

With the aid of the low volatility screen, the S&P Access Hong Kong Low Volatility High Dividend Index exhibited more defensive characteristics with reduced return drawdown during bear market phases compared with the simple high dividend yield volatility screen, the S&P Access Hong Kong Low Volatility High Dividend Index exhibited more defensive characteristics with reduced return drawdown during bear market phases compared with the simple high dividend yield Volatility High Dividend Index exhibited more defensive characteristics with reduced return drawdown during bear market phases compared with the simple high dividend yield portfolio.

I personally prefer using unhedged positions because (a) It is cheaper (b) In the long run, currency effects will average out (c) The value of hedging is questionable when a basket of currencies are involved and (d) While currencies on their own have zero expected return over cash, adding them to a portfolio reduces volatility and offers diversification benefits.

He found that allocating 7 - 16 % of a portfolio to precious metals (SPMI), reduced volatility and increased rate of return.

In response to some of the commenters above, a small amount of bonds in your portfolio (10 to 20 %) can reduce the volatility of your investment without substantially reducing your returns in the long run.

Instead they are focused on so - called «alternatives,» such as hedge funds, that try to reduce volatility even if it means lower rates of return.

One of the objectives of low volatility strategies is to provide higher risk - adjusted returns than their respective benchmarks over the long run, primarily by reducing drawdowns during market downturns.

Used correctly, and this typically involves a high degree of due diligence, the satellite trades can either reduce volatility or enhance portfolio return.

It turns out that opting for high - yield stocks by industry tends to give investors the benefit of diversification (reduced volatility) without costing much on the return front.