Investor Education
Risk & Performance Metrics
Metrics can help describe a portfolio, but no single number captures all risk, quality or future potential.
Absolute and annualized return
Return figures depend on the start/end date, cash flows and calculation method.
Volatility
A statistical measure of return variability. It does not capture every form of risk.
Drawdown
Measures decline from a previous peak and helps describe downside experience.
Sharpe ratio
Compares excess return with total volatility; results vary with the chosen period and assumptions.
Sortino ratio
Similar to Sharpe but focuses on downside variability rather than total volatility.
Benchmark comparison
Only meaningful when the benchmark is appropriate for the portfolio's mandate and risk exposures.
Risk disclosure: All investing involves risk, including loss of principal. Diversification and asset allocation do not guarantee a profit or prevent loss. Past performance does not guarantee future results.