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 10m 16d)

Returns (annualized)

Portfolio 4.94%
Benchmark 7.24%

Risk (annualized)

Portfolio 7.58%
Benchmark 10.52%

Sharpe (annualized)

Portfolio 0.42
Benchmark 0.53

Excess Return (annualized)

-2.30%

Tracking Error (annualized)

12.22%

Information Ratio

-0.19
Statistic Portfolio Benchmark
Downside Volatility 7.94% 11.28%
Sortino Ratio 0.40 0.49
Calmar Ratio 0.24 0.25
Ulcer Index 15.07 15.28
Max Drawdown 13.24% 22.16%
VaR (99% Confidence) $-1,762 $-2,446
VaR (99.9% Confidence) $-2,340 $-3,249
Beta to Benchmark 0.08 N/A

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

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.91

Skew

-0.35
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Market Factor 0.1515 0.5953 -0.4438
Vol Factor 0.0298 -0.0028 0.0327
Vol Term Structure 0.1267 -0.0020 0.1287
Credit Factor 0.0062 0.0776 -0.0714
Duration Factor 0.7328 0.3150 0.4178
Yield Curve Factor 0.0791 0.0089 0.0702
Inflation Factor 0.0906 0.0204 0.0702

Adjusted R2

Portfolio 0.47
Benchmark 0.99

Intercept

Portfolio 0.00
Benchmark -0.00

Factor Attribution