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What Are Some Best Practices For Interpreting & Analyzing The Results Of Portfolio Backtesting?

Written by Jasmeet Sodhi | Feb 21, 2023 12:30:39 PM

Some best practices for interpreting and analyzing the results of portfolio backtesting include examining Sharpe ratios, computing returns versus benchmark indexes, and analyzing the overall diversification of the portfolio.

It's important to consider transaction costs and risk tolerance when making decisions. Use different scenarios to test how potential changes may impact the overall portfolio performance.