Portfolio Analytics
Semi-Variance
Definition
What is Semi-Variance?
The varianceThe average squared deviation of returns from their mean. of observations below a selected mean or target.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. uses semi-variance to focus only on harmful fluctuations.
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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.