Portfolio Analytics
Recovery Period
Definition
What is Recovery Period?
The time required for an investment to regain a previous peak after a drawdown.
Example in practice
How This Looks in Practice
The index takes 18 months to recover its pre-crash level.
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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.