Vol Term Structure

Portfolio Specification

Policy

Rebalancing Interval Daily
Weights Algorithm Constant Weights

This portfolio is listed on the Community Portfolios page.

Portfolio Description

“Vol Term” is a volatility risk factor that captures the risk of speculating on a piece of the vol surface.

The factor is proxied by going long a basket of mid-term vix futures and short a basket of front-month vix futures with the goal of neutralizing much of the volatility exposure of the factor.

Policy Report

Backtest Report

From to (4m 21d)

Returns

Portfolio 12.23%
Benchmark 9.41%

Risk (annualized)

Portfolio 12.36%
Benchmark 11.19%

Sharpe (annualized)

Portfolio 2.13
Benchmark 1.77

Excess Return

2.81%

Tracking Error (annualized)

10.16%

Information Ratio

0.83
Statistic Portfolio Benchmark
Downside Volatility 14.28% 12.15%
Sortino Ratio 1.85 1.63
Calmar Ratio 4.82 3.90
Ulcer Index 15.75 15.74
Max Drawdown 5.47% 5.07%
VaR (99% Confidence) $-2,861 $-2,590
VaR (99.9% Confidence) $-3,801 $-3,441
Beta to Benchmark 0.70 N/A

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

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.96

Skew

-1.20
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Style Factor 0.1967 0.0118 0.1849
Size Factor -0.1695 -0.0500 -0.1195
Market Factor 0.8148 1.0004 -0.1857
U.S. Tilt (Non U.S.) 0.4688 0.3524 0.1164

Adjusted R2

Portfolio 0.40
Benchmark 1.00

Intercept

Portfolio 0.00
Benchmark 0.00

Factor Attribution