Portfolio Analytics

Drawdown

Definition

What is Drawdown?

A decline from a previous portfolio or asset-value peak.

Example in practice

A fund at ₦90 after peaking at ₦100 is in a 10% drawdown.

Keep learning

A statistic ranging from minus one to plus one that describes how two return series move together.

A relationship in which two assets tend to move in the same direction.

A relationship in which two assets tend to move in opposite directions.

An analysis of portfolio performance under severe but plausible scenarios.

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