Risk Parityrisk_portfolio
Risk parity is an investment approach that allocates portfolio risk, rather than capital, evenly across asset classes by adjusting weights and using leverage to balance each class's contribution to overall risk.
Terms starting with “R”
60 definitions found.
Risk Tolerancerisk_portfolio
Risk tolerance is the level of variability in investment returns an investor is willing to endure over a given time horizon.
Risk-Adjusted Returnrisk_portfolio
Risk-adjusted return is a performance metric that expresses investment returns in relation to the amount of risk taken. It enables comparisons across assets or portfolios by accounting for volatility and, in some metrics…
Risk-Free Assetrisk_portfolio
An asset whose default risk is considered negligible, typically short-term government securities. Its return is used as the risk-free benchmark in financial models.
Roll Downfixed_income
Roll down is the price- and return effect that occurs when a fixed-rate bond ages along an upward-sloping yield curve, moving toward shorter maturities while yields remain unchanged.
Roll Yieldderivatives
Roll yield is the return realized when a futures position is rolled forward from the near-term contract to the next-month contract, caused by the price difference between the adjacent contracts as reflected in the shape …
Rolloverderivatives
A rollover in derivatives is the process of extending exposure by closing a near-term contract and opening a longer-dated contract in the same underlying asset. The goal is to maintain exposure without settlement on the …
Rounding Bottomtechnical
Rounding bottom is a technical analysis chart pattern in which a security's price forms a smooth, U-shaped bottom, signaling a potential reversal from a downtrend to an uptrend.
RSI Divergencetechnical
RSI Divergence is a condition in which price action and the Relative Strength Index (RSI) move in opposite directions or fail to confirm each other, indicating a potential shift in momentum.
Rule 10b-5regulation
Rule 10b-5 is a provision under Section 10(b) of the Securities Exchange Act of 1934 that prohibits fraud in connection with the purchase or sale of any security traded in interstate commerce.