PORTFOLIO PERFORMANCE: STRESS TEST / REPORT CARD ATTRIBUTION / TIME SERIES: RELATIVE RETURN COMPARISONS
1. STRESS TEST
How might your portfolio respond to a bull or bear market? Over the longer term, has the portfolio generally kept pace with a benchmark? Has it been more or less volatile than its benchmark? PIQ’s Stress Test answers these questions.
PIQ’s Performance Stress Test allows users to review how their portfolio has behaved over a selected time period or over PIQ’s pre-selected periods that represent bull and bear markets. Volatility and minimum and maximum drawdowns are compared to the portfolio’s benchmark.
The portfolio’s future value is projected using either historic returns or a user specified rate of return. Time series graphs are also part of the stress test reporting.
2. PERFORMANCE ATTRIBUTION: THE REPORT CARD
Was alpha created in the portfolio’s returns by sector selection; was it attributable to stock selection or was it both?
PIQ creates a performance report card by calculating portfolio performance against a benchmark and decomposing it along the lines of sector allocation and stock selection for each major economic group. Economic groups include Technology, Healthcare, Industrials and others.
Alpha is created either by allocating to a specific sector that outperforms the benchmark or by having individual companies outperform the other companies in their specific sector.
In addition to Sector/Stock Selection decomposition, PIQ also creates the report card based on other factors of return. The portfolio can be analyzed along the lines of economic or risk exposures, value silos or a host of other attributes.
3. TIME SERIES: RELATIVE RETURN COMPARISONS
The historical total returns for your portfolio can be compared against various indices, sectors, industries or single securities.