Levered Dragon

Portfolio Specification

Policy

Rebalancing Interval Quarterly
Weights Algorithm Equal Inverse Volatility
Weights Algorithm Look-back 1 Year
Weights Updating Interval Quarterly

Benchmark

Simple 60/40

This portfolio is listed on the Community Portfolios page.

Portfolio Description

A leveraged interpretation of Chris Cole’s Dragon Portfolio. Since leverage access isn’t constant across asset classes, an inverse-volatility weighting algorithm is used to balance risk within the portfolio.

Policy Report

Backtest Report

From to (11y 4m 26d)

Returns (annualized)

Portfolio 4.87%
Benchmark 7.65%

Risk (annualized)

Portfolio 7.70%
Benchmark 10.52%

Sharpe (annualized)

Portfolio 0.39
Benchmark 0.56

Excess Return (annualized)

-2.78%

Tracking Error (annualized)

12.11%

Information Ratio

-0.23
Statistic Portfolio Benchmark
Downside Volatility 8.13% 11.25%
Sortino Ratio 0.37 0.52
Calmar Ratio 0.23 0.27
Ulcer Index 15.08 15.30
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,790 $-2,446
VaR (99.9% Confidence) $-2,377 $-3,249
Beta to Benchmark 0.10 N/A

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

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.64

Skew

-0.40
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1615 0.5963 -0.4348
Vol Factor 0.0313 -0.0027 0.0340
Vol Term Structure 0.1267 -0.0018 0.1285
Credit Factor -0.0037 0.0767 -0.0804
Duration Factor 0.7375 0.3156 0.4219
Yield Curve Factor 0.0764 0.0087 0.0677
Inflation Factor 0.0912 0.0197 0.0715

Adjusted R2

Portfolio 0.46
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution