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.

Standard Deviation vs. Maximum Drawdown

	Standard Deviation	Maximum Drawdown
Description	Measures the dispersion of returns from the mean	Measures the largest peak-to-trough decline
Interpretation	Higher values indicate higher volatility	Indicates potential loss in a downturn
Risk Level	High	High
Historical Performance	0.15	-0.2
Benchmark Comparison	S&P 500	Historical Average