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 11m 23d)

Returns (annualized)

Portfolio 5.18%
Benchmark 7.39%

Risk (annualized)

Portfolio 7.57%
Benchmark 10.48%

Sharpe (annualized)

Portfolio 0.44
Benchmark 0.54

Excess Return (annualized)

-2.21%

Tracking Error (annualized)

12.18%

Information Ratio

-0.18
Statistic Portfolio Benchmark
Downside Volatility 7.94% 11.25%
Sortino Ratio 0.42 0.51
Calmar Ratio 0.25 0.26
Ulcer Index 15.07 15.29
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,761 $-2,438
VaR (99.9% Confidence) $-2,339 $-3,239
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

4.89

Skew

-0.35
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1527 0.5953 -0.4426
Vol Factor 0.0299 -0.0028 0.0328
Vol Term Structure 0.1258 -0.0020 0.1278
Credit Factor 0.0053 0.0776 -0.0723
Duration Factor 0.7326 0.3150 0.4176
Yield Curve Factor 0.0789 0.0089 0.0700
Inflation Factor 0.0900 0.0204 0.0696

Adjusted R2

Portfolio 0.47
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution