Risk and portfolio
Volatility, drawdown, beta, diversification — and what none of them reveal.
7 articles
Hidden concentration: when twenty securities are one betA portfolio can look varied and depend on a single factor. That is established by calculation rather than by looking.
Portfolio liquidity risk: how long an exit would takeWhat has to be assessed is not only a position's return but the time it takes to close without losses.
Correlation: why diversification sometimes stops workingThe link between assets is not constant and rises precisely in a crisis — that is, when it was being counted on.
Beta: how closely a security repeats the marketA coefficient of sensitivity to the market. Useful for understanding the structure of risk and useless as a forecast.
How to assess the risk of a position, step by stepFive questions before the trade, each cheaper than any of the answers after it.
Drawdowns: why duration matters more than depthMaximum drawdown, time underwater, and what actually breaks an investor.
Volatility is not riskHow price fluctuation differs from the probability of losing money, and why the calmest security is sometimes the most dangerous.