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Decline

Quantitative investing

Downside risk

Downside risk represents the potential for undesirable events that can devalue an investment.


Naturally, investors aim to minimize risks that aren't compensated by higher returns. It's pivotal to differentiate between downside risk and volatility. While volatility indicates price fluctuations in both directions, downside risk is solely concerned with potential losses.

See also

Gradient descent
Factor investing
Behavioral finance


Invisible layers surface to deliver attractive returns