Infront Portfolio Manager

Risk-return diagram

The portfolio risk figures open as the table described above. Select the "Risk/return chart" tab at the bottom of the window in the work area to switch to the chart display.

PM_risk_retunr_diagram_EN.png

The dots in the diagram mark the owners or portfolios (in the "diamond" style as delivered, see image above). On the Y-axis you can read the return p. a. (=performance p. a.) of the portfolio, on the x-axis the total risk (=volatility).

The risk/return ratio can thus be compared between different holders and in relation to their benchmark. A portfolio can be described as 'better' in comparison to another (or a benchmark) if it either has a higher performance with the same risk or a lower risk with the same performance, or a combination of both. Expressed graphically: The further to the left a point is in the diagram, the better.