Risk & Drawdown Dashboard

Beta vs Benchmark

Shows how sensitive the asset is to overall market moves. A beta above 1 means it usually moves more than the benchmark, below 1 means less.

Realized Correlation

Measures how closely the asset’s returns have moved with the benchmark over rolling time windows. High correlation means they move together.

Drawdown Duration (per Year)

Tracks how long the asset stays below its previous high each year. Longer durations signal slower recoveries from losses.

Drawdowns (%)

Shows the depth of losses from peak to trough over time. Useful for understanding worst-case declines.

Rolling Sharpe Ratio

Evaluates return per unit of risk. A higher Sharpe means the asset delivered better risk-adjusted performance in that period.

Realized Volatility

Captures how much the asset’s returns have fluctuated. Higher volatility means larger swings and greater uncertainty.

Understanding Risk & Drawdown Metrics

What Are These Metrics?

This dashboard provides a comprehensive view of an asset's risk profile, both on its own and relative to a benchmark (like the S&P 500). It helps you understand not just an asset's returns, but the risks taken to achieve them.

How to Interpret the Charts

  • Beta vs Benchmark: Shows the asset's sensitivity to market moves. A beta of 1.5 means the asset tends to move 1.5% for every 1% move in the benchmark. Upside/Downside beta splits this into performance during up-markets vs. down-markets.
  • Drawdowns (%): Measures the percentage loss from an asset's peak price to its subsequent low. It's a key indicator of downside risk and potential pain.
  • Drawdown Duration: Shows how long it takes for an asset to recover and reach a new all-time high after a drawdown. Longer durations can test an investor's patience.
  • Rolling Correlation/Volatility: These charts show how the asset's correlation to the market and its own volatility have changed over time, revealing if its character is changing.
  • Rolling Sharpe Ratio: Evaluates return per unit of risk over time. A higher Sharpe ratio means the asset delivered better risk-adjusted performance in that period.

Practical Applications

  • Assess if an asset's volatility and drawdown profile fit your personal risk tolerance.
  • Understand how an asset is likely to behave in different market conditions (bull vs. bear).
  • Compare the risk-adjusted performance of different assets to build a more efficient portfolio.