Posted inPortfolio Management

Value at Risk (VaR) Explained

A complete guide to Value at Risk (VaR) — how it's calculated using historical, parametric, and Monte Carlo methods, worked examples, Conditional VaR, limitations exposed by the 2008 crisis, and how it compares to maximum drawdown.
Posted inPortfolio Management

Sortino Ratio vs Sharpe Ratio

A head-to-head guide to the Sortino ratio vs the Sharpe ratio — formulas, worked side-by-side examples, when each metric gives a different verdict, which to use for which strategies, and their shared limitations.
Posted inPortfolio Management

Efficient Frontier Explained

A focused guide to the efficient frontier — how it's constructed, the minimum variance portfolio, how the number of assets and correlation shape its curve, limitations, and how to build one in practice.