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 (10y 9m 26d)

Returns (annualized)

Portfolio 5.08%
Benchmark 7.09%

Risk (annualized)

Portfolio 7.58%
Benchmark 10.53%

Sharpe (annualized)

Portfolio 0.43
Benchmark 0.52

Excess Return (annualized)

-2.01%

Tracking Error (annualized)

12.24%

Information Ratio

-0.16
Statistic Portfolio Benchmark
Downside Volatility 7.93% 11.29%
Sortino Ratio 0.42 0.48
Calmar Ratio 0.25 0.25
Ulcer Index 15.07 15.28
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,762 $-2,449
VaR (99.9% Confidence) $-2,341 $-3,254
Beta to Benchmark 0.08 N/A

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

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.92

Skew

-0.34
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1517 0.5953 -0.4436
Vol Factor 0.0299 -0.0029 0.0327
Vol Term Structure 0.1270 -0.0020 0.1290
Credit Factor 0.0062 0.0776 -0.0714
Duration Factor 0.7327 0.3150 0.4177
Yield Curve Factor 0.0798 0.0089 0.0709
Inflation Factor 0.0902 0.0204 0.0698

Adjusted R2

Portfolio 0.47
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution