Annualised volatility
How much the portfolio swings, up and down, expressed per year.
In the demo portfolio
25.5%
How it is computed here
Standard deviation of the daily returns multiplied by the square root of 252, the number of trading sessions in a year.
Worked example
- The standard deviation of 1,561 daily returns is 1.605% a day.
- Scaled to a year with √252 trading days: 1.605% × 15.875 = 25.5%.
Demo portfolio: four invented companies, generated prices, measured by the real engine. Past returns do not predict future ones.
Where it misleads
It punishes a sharp rise exactly as hard as a sharp fall, and nobody complains about the first. And it assumes returns are symmetric and well behaved, which yours are not — see skew and tails.