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.

Downside Deviation vs. Maximum Drawdown

	Downside Deviation	Maximum Drawdown
Description	Measures the volatility of negative returns	Measures the largest peak-to-trough decline
Interpretation	Focuses on downside risk	Indicates potential loss in a downturn
Risk Level	Medium	High
Historical Performance	0.1	-0.2
Benchmark Comparison	None	Historical Average