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What Are the Key Metrics in Risk-Based Investment Analytics?

Written by Radient | Jul 18, 2023 11:38:44 AM

Key metrics in risk-based investment analytics include beta, which measures the asset's sensitivity to market fluctuations; standard deviation, indicating the investment's volatility; Sharpe ratio, assessing risk-adjusted returns; alpha, measuring performance against a benchmark; and Value at Risk (VaR), estimating potential losses. These metrics aid investors in evaluating and managing the risks associated with their investments.