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Risk Management




Upside Risk


A type of risk that represents all financial losses that may arise from uncertain possibility of gain/ profit. It is calculated using data only for trading days marking an uptrend in a select benchmark (index). Upside risk measures the extent to which the value of a tradable asset/ investment might exceed expected levels.

Upside risk and downside risk are two separate sources of risk that constitute a measure called dual-beta.

Risk in general may be defined to be positive or negative. Put another way, the potential for gain is a form of positive risk while the potential for loss represents negative risk. For example, the potential gains from investing in high-tech stocks would represent “positive risk,” while the potential losses associated with volatility of such stocks represent “negative risk.”

Upside risk is usually measured by upside beta and upper semi-deviation, among others.



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Risk management is a collection of tools, techniques and regimes that are used by businesses to deal with uncertainty. This involves planning and ...
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