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 6d)

Returns (annualized)

Portfolio 5.01%
Benchmark 7.67%

Risk (annualized)

Portfolio 7.69%
Benchmark 10.50%

Sharpe (annualized)

Portfolio 0.41
Benchmark 0.56

Excess Return (annualized)

-2.66%

Tracking Error (annualized)

12.13%

Information Ratio

-0.22
Statistic Portfolio Benchmark
Downside Volatility 8.11% 11.22%
Sortino Ratio 0.39 0.53
Calmar Ratio 0.24 0.27
Ulcer Index 15.08 15.30
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,788 $-2,441
VaR (99.9% Confidence) $-2,375 $-3,243
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

4.68

Skew

-0.40
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1607 0.5960 -0.4353
Vol Factor 0.0313 -0.0028 0.0340
Vol Term Structure 0.1259 -0.0019 0.1279
Credit Factor -0.0029 0.0771 -0.0800
Duration Factor 0.7369 0.3153 0.4216
Yield Curve Factor 0.0767 0.0088 0.0679
Inflation Factor 0.0918 0.0197 0.0721

Adjusted R2

Portfolio 0.46
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution