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 5m 17d)

Returns (annualized)

Portfolio 4.69%
Benchmark 7.59%

Risk (annualized)

Portfolio 7.69%
Benchmark 10.51%

Sharpe (annualized)

Portfolio 0.37
Benchmark 0.55

Excess Return (annualized)

-2.90%

Tracking Error (annualized)

12.09%

Information Ratio

-0.24
Statistic Portfolio Benchmark
Downside Volatility 8.13% 11.24%
Sortino Ratio 0.35 0.52
Calmar Ratio 0.21 0.26
Ulcer Index 15.08 15.30
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,788 $-2,444
VaR (99.9% Confidence) $-2,376 $-3,246
Beta to Benchmark 0.11 N/A

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

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.63

Skew

-0.40
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1616 0.5964 -0.4348
Vol Factor 0.0314 -0.0027 0.0341
Vol Term Structure 0.1273 -0.0017 0.1290
Credit Factor -0.0032 0.0766 -0.0798
Duration Factor 0.7373 0.3155 0.4217
Yield Curve Factor 0.0760 0.0088 0.0672
Inflation Factor 0.0919 0.0196 0.0722

Adjusted R2

Portfolio 0.46
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution