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 14d)

Returns (annualized)

Portfolio 5.45%
Benchmark 7.41%

Risk (annualized)

Portfolio 7.66%
Benchmark 10.48%

Sharpe (annualized)

Portfolio 0.47
Benchmark 0.55

Excess Return (annualized)

-1.96%

Tracking Error (annualized)

12.22%

Information Ratio

-0.16
Statistic Portfolio Benchmark
Downside Volatility 8.06% 11.23%
Sortino Ratio 0.45 0.51
Calmar Ratio 0.27 0.26
Ulcer Index 15.08 15.29
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,782 $-2,437
VaR (99.9% Confidence) $-2,367 $-3,237
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

4.86

Skew

-0.39
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1553 0.5953 -0.4400
Vol Factor 0.0306 -0.0028 0.0335
Vol Term Structure 0.1241 -0.0020 0.1261
Credit Factor 0.0028 0.0776 -0.0748
Duration Factor 0.7336 0.3150 0.4186
Yield Curve Factor 0.0789 0.0089 0.0701
Inflation Factor 0.0962 0.0204 0.0758

Adjusted R2

Portfolio 0.46
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution