Maximum Drawdown — The largest peak-to-trough loss observed over a measurement period. Expressed as a percentage.
A stock that went from $100 to $200 to $80 has a max drawdown of -60% (from the $200 peak to the $80 trough).
3-year and 5-year max drawdown shown on the Risk card. The single most intuitive risk measure — investors emotionally relate to '50% drop' more than VaR percentages.
The Maximum Drawdown metric shows up on every IndexAlpha research page. See it now on ARKK — or research any stock to view its Maximum Drawdown.
The largest peak-to-trough loss observed over a measurement period. Expressed as a percentage.
3-year and 5-year max drawdown shown on the Risk card. The single most intuitive risk measure — investors emotionally relate to '50% drop' more than VaR percentages.