Drawdown is a strategy to determine the financial risk of an investment by tracking its peaks and valleys. It is commonly used with commodities and measured by the Calmar, Sterling, and Burke ratios to assess downside risk and excess return. The calculation helps investors project future movements and assess an investment’s potential. A drawdown is […]

Drawdown is a strategy to assess the financial risk of an investment by tracking its peaks and valleys over time. It is often used with commodities and calculated using performance metrics such as the Calmar, Sterling, and Burke ratios. The goal is to determine the degree of risk associated with the investment and project future […]