The Benchmark for Measuring Financial Risk

A RiskGrade™ Measure is an open and transparent benchmark to measure the risk of the world's financial assets. 

A RiskGrade™ Measure:

allows for a comparison of investment risk across all asset classes, regions, and currencies.

varies over time to reflect asset specific information (e.g., the price of a stock reacting to an earnings release) and general market conditions.

operates differently from traditional risk measures, such as beta, standard deviation, and average shortfall

Find out much more in our RiskGrades™ Measurement Tools Help Center, or take a module of our Online Education course

How Do We Calculate a Riskgrade™ Measure?

Calculating the RiskGrade™ Measure is a two-step process. 

First, we calculate how much variation there is in the asset's price, making the most recent history more important than outdated observations.

Second, we compare the asset's volatility to the volatility of a basket of global equities. The ratio of these volatilities results is a RiskGrade™ Measure.

The RiskGrade™ Measure can vary from 0, for cash, to values well in excess of 1000 for highly speculative investments.

For a brief description of the formulas for calculating the RiskGrade™ Measure of an asset see our RiskGrades™ Measurement Tools Help Center: How RiskGrades™ Measures Are Calculated. For a detailed definition of the RiskGrade™ Measure, explore the RiskGrades™ Technical Document