Portfolio Analytics

Semi-Variance

Definition

What is Semi-Variance?

The variance of observations below a selected mean or target.

Example in practice

An investor uses semi-variance to focus only on harmful fluctuations.

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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