Unknown Indicator
Semi Deviation In A Nutshell
What is different with this compared to standard deviation is it only looks at the negative returns, whereas standard deviation looks at both the positive and negative returns. How this may be important is it gives the user a look at possible losses. Many people only look at the expect growth of an investment, but fail to realize the potential drawdowns. Minimizing risk while optimizing returns is the goal of every trader and investor.
A popular data point among traders and investors alike is the standard deviation, which allows the person to gauge where the market may go for a given period. With that, there is a data set called the semi deviation, and this helps with looking at the returns that are below the mean.
Closer Look at Semi Deviation
Using deviations are a wonderful tool because it will give you percentages of the likelihood of an event happening. An example is one standard deviation both ways is stated to contain roughly 68% of the likely data points away from the mean. Semi deviation and give a likely hood of a drawdown happening. Before implanting this data set, test it and see if it fits your current investing strategy. MacroAxis has a wonderful base of tools and research knowledge to give you a head start in your adventure. Remember, semi deviation only measures to the downside so it may not be suitable for all situations.
Other Indicators
All Technical Analysis
Investing Ideas
You can quickly originate your optimal portfoio using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Thematic Opportunities
Explore Investment Opportunities
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |