Portfolio Analytics
Recovery Period
Definition
What is Recovery Period?
The time required for an investmentAn asset or commitment of money made with the expectation of future income, growth, or both. to regain a previous peak after a drawdownA decline from a previous portfolio or asset-value peak..
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.