Portfolio Analytics
Active Risk
Definition
What is Active Risk?
The volatility of a portfolio's active return, also called tracking error.
Example in practice
How This Looks in Practice
Keep learning
Related Terms
Portfolio Analytics
Correlation
A statistic ranging from minus one to plus one that describes how two return series move together.
Portfolio AnalyticsPositive Correlation
A relationship in which two assets tend to move in the same direction.
Portfolio AnalyticsNegative Correlation
A relationship in which two assets tend to move in opposite directions.
Risk ManagementStress Test
An analysis of portfolio performance under severe but plausible scenarios.