Risk
Drawdown
The decline from a prior peak to a subsequent trough in an equity curve or portfolio value series.
- Magnitude, duration, and recovery time all matter when evaluating survivability.
Related: time under water, tail risk, risk budget
Glossary
Quantitative analysis glossary
A shared vocabulary for research methods, backtesting, risk review, portfolio analysis, and quantitative decision-making workflows.
Search and filters
Methods
Research design, hypotheses, evidence standards, and review discipline.
3 terms
Backtesting
Historical evaluation terms and common sources of overstatement.
4 terms
Risk
Drawdown, exposure, loss control, and stress-review vocabulary.
3 terms
Portfolio
Allocation, concentration, diversification, and performance measurement terms.
3 terms
Results
4 matching terms
Risk
Tail risk
Exposure to rare but severe outcomes that can dominate long-term results or survival constraints.
- Tail risk is often underrepresented by average return or ordinary volatility alone.
Related: stress test, drawdown, ruin
Portfolio
Benchmark
A reference series or policy portfolio used to evaluate performance, risk, exposure, or opportunity cost.
- A good benchmark should match the decision context closely enough to make comparisons meaningful.
Related: alpha, beta, tracking error
Risk
Risk budget
A defined allowance for how much loss, volatility, concentration, or exposure a portfolio component may contribute.
- Risk budgets are useful only when tied to review triggers and enforcement rules.
Related: position sizing, exposure, drawdown
Educational boundary
This content is for educational and technical research purposes only. It is not financial advice, investment advice, trading advice, tax advice, or legal advice. Backtests and examples may contain errors or omissions. Past performance does not guarantee future results. Always test code in a safe environment before using it with real accounts or live trading systems.
InQuantWeTrust publishes educational content for quantitative research and analytical methods. It does not provide personalized advice, trade recommendations, managed services, or guaranteed outcomes.