Risk is pervasive in all our lives. Imagining a range of future outcomes and their likelihoods is key to the choices we make. So, it seems the more well-informed we can be of implicit risk measurement and assessment of outcomes, the better risk managers and decision-makers we will be in our everyday lives.
In our latest paper, “What is Risk? How a Systematic Investor Assesses Risk in the Market,” we explore the universality of risk, the complexity of measurement and assessment, as well as a more mathematical approach to risk.
Readers will learn about RQSI’s risk measurement and risk assessment framework as it pertains to portfolio management. Along with presenting a more philosophical view of risk, we walk through the building blocks of estimating volatility and correlations for position sizing and how to consider diversifying investments in a single portfolio.