الخميس, 30 حزيران/يونيو 2022 05:29

VaR Key to Help Volatility Management

Written by
Rate this item
(1 Vote)

To say investors are worried about the volatility in their portfolio in the current environment would be putting it lightly. The stock market gyrations are putting investors and their advisors in a difficult place. One way to manage volatility is to help clients calculate the Value at Risk for stocks or their whole portfolio. While VaR often is thought of as a heavily quantitative endeavor it's simpler in implementation than advisors might imagine, and only a small amount of statistics is necessary to calculate the VaR. It is a handy metric because it's a good gauge of the volatility underlying securities, and can help communicate and find better securities for investors.


Finsum: VaR is pivotal to forming long-short positions for clients and is an excellent addition to an advisor's portfolio of tools.

Contact Us

Newsletter

اشترك

Subscribe to our daily newsletter

Top