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Chapwood Investments

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8 Metrics

Most people have a difficult time evaluating their portfolios, and there has never been until now a clear understanding of what the most important metrics are. These metrics are universally accepted as the best way to evaluate your investment portfolio.

Download overview
Rate of ReturnThis is the rate you need to make on your portfolio in order to not lose purchasing power after subtracting your expenses, taxes, and cost of living increase.
Standard DeviationThis is a statistic that measures how much risk you are taking versus your return. The lower the number, the better.
Variance Drag Phantom TaxThis ratio calculates the degree of your standard deviation in proportion to your rate of return. Ideally, it will be at 0.8 or less. Anything over 1.5 is not acceptable.
Sharpe RatioYou want this to be 1 or higher on your entire portfolio. Anything at 0.5 or less is unacceptable.
Probability of Any Loss in the Next 12 MonthsThis is the probability that your portfolio will experience any loss during the next 12 months. It should be 15% or less.
Amount of Money at Risk in the Next 12 MonthsBased on historical data, this identifies how much money is at risk.
Upper and Lower ReturnYou want this range of returns to be as narrow as possible.
Correlation to S&P 500This shows the movement of one investment or index in relation to another. The scale is between +1 and -1.

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We are not your typical investment firm. We provide expert financial advice to both individuals and businesses.

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Chapwood Investments

4965 Preston Park Boulevard, Suite 100
Plano, TX 75093
(972) 865-2225
Ed@ChapwoodInvestments.com

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Chapwood Investments, LLC is an SEC Registered Investment Advisory Firm (SEC.gov). No mention, opinion, or omission of a particular security, index, derivative, or other instrument constitutes an opinion on suitability of any security. The information and data on this site, in webcasts, and in videos were obtained from sources deemed reliable. Their accuracy and completeness are not guaranteed. At any given time, principals at Chapwood Investments, LLC may or may not have a financial interest in any or all of the securities or instruments discussed on this site, in webcasts, or in videos. The guests appearing on videos do not receive compensation or provide endorsements or testimonials. Past performance is not indicative of any future results. Copyright © 2023 · All rights reserved.
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