Drawdown
Drawdown is the peak-to-trough decline during a specific period for an investment or trading account. It measures the percentage drop from the highest value to the lowest value, indicating the risk and volatility of the investment.
Key Takeaways
- Drawdown measures peak-to-trough declines in investments.
- Indicates risk and volatility.
- Shows percentage drop from highest to lowest value.
- Useful for assessing investment performance and risk management.
