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 1m 3d)

Returns (annualized)

Portfolio 5.53%
Benchmark 7.48%

Risk (annualized)

Portfolio 7.66%
Benchmark 10.46%

Sharpe (annualized)

Portfolio 0.48
Benchmark 0.55

Excess Return (annualized)

-1.94%

Tracking Error (annualized)

12.21%

Information Ratio

-0.16
Statistic Portfolio Benchmark
Downside Volatility 8.07% 11.22%
Sortino Ratio 0.46 0.51
Calmar Ratio 0.28 0.26
Ulcer Index 15.08 15.29
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,782 $-2,433
VaR (99.9% Confidence) $-2,367 $-3,232
Beta to Benchmark 0.09 N/A

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

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.83

Skew

-0.40
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1558 0.5953 -0.4395
Vol Factor 0.0308 -0.0028 0.0337
Vol Term Structure 0.1244 -0.0020 0.1265
Credit Factor 0.0026 0.0776 -0.0750
Duration Factor 0.7329 0.3150 0.4179
Yield Curve Factor 0.0783 0.0089 0.0694
Inflation Factor 0.0970 0.0204 0.0766

Adjusted R2

Portfolio 0.45
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution