Dongjiang Environmental Downside Deviation vs. Information Ratio

002672 Stock   4.75  0.05  1.04%   
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Dongjiang Environmental Co has current Downside Deviation of 3.2. Downside Deviation (or DD) is measured by target semi-deviation (the square root of target semi-variance) and is termed downside risk. It is expressed in percentages and therefore allows for rankings in the same way as standard deviation. An intuitive way to view the downside risk is the annualized standard deviation of returns below the target.

Downside Deviation

=

SQRT(DV)

 = 
3.2
SQRT = Square root notation
DV =   Downside Variance of returns over selected period

Dongjiang Environmental Downside Deviation Peers Comparison

Dongjiang Downside Deviation Relative To Other Indicators

Dongjiang Environmental Co is rated below average in downside deviation category among its peers. It is currently under evaluation in information ratio category among its peers reporting about  0.03  of Information Ratio per Downside Deviation. The ratio of Downside Deviation to Information Ratio for Dongjiang Environmental Co is roughly  36.85 
It is the square root of the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of most private investors.
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