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 25d)

Returns (annualized)

Portfolio 4.97%
Benchmark 6.89%

Risk (annualized)

Portfolio 7.69%
Benchmark 10.48%

Sharpe (annualized)

Portfolio 0.41
Benchmark 0.50

Excess Return (annualized)

-1.92%

Tracking Error (annualized)

12.19%

Information Ratio

-0.16
Statistic Portfolio Benchmark
Downside Volatility 8.12% 11.24%
Sortino Ratio 0.39 0.46
Calmar Ratio 0.24 0.24
Ulcer Index 15.08 15.29
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,788 $-2,436
VaR (99.9% Confidence) $-2,376 $-3,236
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

4.74

Skew

-0.40
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1584 0.5954 -0.4371
Vol Factor 0.0310 -0.0028 0.0338
Vol Term Structure 0.1252 -0.0020 0.1272
Credit Factor -0.0007 0.0775 -0.0782
Duration Factor 0.7349 0.3150 0.4199
Yield Curve Factor 0.0780 0.0089 0.0691
Inflation Factor 0.0957 0.0203 0.0754

Adjusted R2

Portfolio 0.46
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution