Comparison of Investment Risk Metrics

What are Investment Risk Metrics?

Investment Risk Metrics are quantitative measures used by investors and financial professionals to assess the level of risk associated with an investment or portfolio.

Beta vs. Maximum Drawdown

	Beta	Maximum Drawdown
Description	Measures an asset's sensitivity to market movements	Measures the largest peak-to-trough decline
Interpretation	Values greater than 1 indicate higher volatility	Indicates potential loss in a downturn
Risk Level	High	High