Sharpe Ratio
Pries Capital Macroeconomic Framework • 1m 12s
Pries Capital’s Sharpe Ratio
Points of discussion:
• The Sharpe Ratio is used to help investors understand the return of an investment compared to its risk.
• The ratio is the average return earned more than the risk-free rate per unit of volatility or total risk.
• Generally, the greater the value of the Sharpe Ratio, the more attractive the risk-adjusted return.
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Dispersion
Pries Capital’s Dispersion Model
Points of discussion:
• Dispersion refers to the range of potential outcomes of investments based on historical volatility or returns.
• Dispersion can be measured using alpha and beta, which measure risk-adjusted returns and returns relative to a benchmark index... -
Elements of Market Risk
Pries Capital’s Elements of Market Risk
Points of discussion:
• The Elements of Market Risk is the leading edge of our process for evaluating and proactively positioning for changing market conditions.
• The Elements of Market Risk intramarket analysis is valuable because it often signals a brea... -
Asset Market Backtests
Pries Capital’s Asset Market Backtests
Points of discussion:
• Backtesting assesses the viability of a trading strategy or pricing model by discovering how it would have played out retrospectively using historical data.
• The underlying theory is that any strategy that worked well in the past is...
