Four Quadrant Portfolio

Portfolio Specification

Policy

Rebalancing Interval Quarterly
Weights Algorithm Equal Risk Contribution
Weights Algorithm Look-back 3 Years
Weights Updating Interval Quarterly

Benchmark

Simple 60/40

This portfolio is listed on the Community Portfolios page.

Portfolio Description

The portfolio is comprised of 4 thematic composites designed to capture different market environments.

  • “Inflationary Boom”

  • “Deflationary Boom”

  • “Inflationary Bust”

  • “Deflationary Bust”

Policy Report

Backtest Report

From to (8y 7m 1d)

Returns (annualized)

Portfolio 6.69%
Benchmark 8.16%

Risk (annualized)

Portfolio 8.67%
Benchmark 11.04%

Sharpe (annualized)

Portfolio 0.51
Benchmark 0.54

Excess Return (annualized)

-1.47%

Tracking Error (annualized)

6.99%

Information Ratio

-0.21
Statistic Portfolio Benchmark
Downside Volatility 9.15% 11.92%
Sortino Ratio 0.48 0.50
Calmar Ratio 0.21 0.27
Ulcer Index 15.15 15.24
Max Drawdown 21.26% 22.16%
VaR (99% Confidence) $-2,017 $-2,567
VaR (99.9% Confidence) $-2,680 $-3,410
Beta to Benchmark 0.61 N/A

Value at Risk (VaR) is calculated off a $10,000 portfolio value.

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

6.59

Skew

-0.46
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.3575 0.6194 -0.2618
Style Factor -0.0091 -0.0016 -0.0075
Size Factor 0.0304 0.0149 0.0155
U.S. Tilt (Non U.S.) -0.0825 -0.0131 -0.0695
Duration Factor 0.8827 0.3303 0.5524
Yield Curve Factor 0.0469 0.0203 0.0266
Inflation Factor 0.4857 0.0309 0.4549

Adjusted R2

Portfolio 0.86
Benchmark 0.99

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution