asking a question about Upside capture vs Downside capture...
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NickJune 18, 26 | Posted in General
I was curious to know for the more seasoned investors what is the typical upside capture and downside capture? How about for an IRA with intermediate to longer term holds? I was wondering if say you try to obtain over 90% upside capture and say below 20% or even 10% downside capture if what your really doing as a portfolio your cancelling your potential total return for the year by doing that? I dont know if that questions makes sense but something I been thinking about. I know like the Risk/reward ration should be high but depending on how you calibrate if that is the word to use in Portfolio Lab you get higher downside capture but the you see the chart show a low downside loss compared to benchmark. help make some sense of this, Appreciate it.
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