Unknown Indicator

Market Risk Adjusted Performance In A Nutshell

Another way to view this is to measure how much risk is being assumed and what the returns amounted to. Knowing risk is certainly one of the most important aspects of investing and is ignored too often in light of potential returns. This type of research can be applied to individual securities as well as portfolios.

When you evaluate a position for a portfolio, you always look at the risk and try to measure it. With market risk adjusted performance, this is taking the market risk and quantifying it. Understanding market risk is important because each market will have different risk levels and variables.

Closer Look at Market Risk Adjusted Performance

Some aspects that contribute to risk are volatility, which measures how much movement you can expect to see in an investment. Typically, you do not want to see high volatility levels because that can cause extreme movements and unwanted fluctuations in portfolio value. Next, you want to look at liquidity and ensure the markets you are investing in have people that are also interested in the same equity. Nothing is worse than being stuck in a position you are unable to get out of. Lastly, ensure the markets you are investing in are well known and have data you can analyze because this will give you the best picture about what you are investing in.

Research on the Internet how people use market risk adjusted performance in their analysis and try that in your current investing model. Open a demo account and see if it fits well with your current situation, hopefully giving you an advantage. Also, join an investing community or trading community where you can bounce your ideas off of people who are active participants in the market.

Knowing risk and how it will affect your portfolio is key because you want to keep risk low and returns high, and finding that perfect balance can take time and research. Risk should be just as important as anything and be sure to use this tool in an affective manner. There are similar risk tools out there so find one that is right for you and keep on going.

Use Investing Themes to Complement your positions

You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Cannabis Thematic Idea Now

Cannabis
Cannabis Theme
Equities that are involved in production and delivery of legal cannabis. This theme is designed for investors that are willing to accept higher levels of market risk inherited by cannabis production and distribution globally. The Cannabis theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cannabis Theme or any other thematic opportunities.
View All  Next Launch
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Stocks Directory
Find actively traded stocks across global markets
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments