Unknown Indicator
Semi Variance In A Nutshell
If you are familiar with variance by itself, then just think of all the variance that is below the mean. Looking to the upside and calculating upside potential, this will provide little to no value. With that being said, many people try to measure risk and how much they can stomach for a given position or portfolio.
Semi Variance is taking the data that you generate that is below the mean and mapping its locations. Why might you need to know the data below the mean, well it can help to limit risk to the downside and gauge how much risk you want to take in a particular investment.
Closer Look at Semi Variance
A popular data point that many use is standard deviation, but that does not take into account the same information semi variance does. This is strictly for downside observations. The goal is to limit the size of semi variance because you want returns with as little risk as possible.
That is about the just of semi variance, so now it is on yourself to asses you current holdings and portfolios and use semi variance to determine how much risk is good for you. Of course you need to focus on the downside and the risks, but be sure to have a target in mind where you may take a little profit off the table. There is a healthy balance between the two sides of the equation and you have to find the happy medium for yourself.
If you want to take a peek at similar tools, look at variance, standard deviation, and few others as this can help to give you a nice well rounded picture of the landscape. Join an investment community as you can bounce your ideas off of the people and get real time feedback. Also, if you consult an investing professional, they should be able to help you and point you in the right direction. Remember, the goal is get the highest returns for least amount of risk and semi variance will help to determine the potential downside risks.
Other Indicators
All Technical Analysis
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 Services Thematic Idea Now
Services
| View All Next | Launch |
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |