Portfolio Analytics
Drawdown
Definition
What is Drawdown?
A decline from a previous portfolioThe complete collection of investments owned by an investor or managed under one mandate. or asset-value peak.
Example in practice
How This Looks in Practice
A fund at ₦90 after peaking at ₦100 is in a 10% drawdown.
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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.