RiskGrades

Risk Center

Risk Grades

RISKGRADES™

RiskGrades™ are a standardized measure of volatility that you can use to evaluate the risk status of your investments at any point in time. When you have access to RiskMetrics Group’s automated system, you can easily compare risk of one investment against another.

About RiskGrades^TM:

A New Way To Measure Risk
How RiskGrades Will Help You
Understanding a RiskGrade Chart

You don't have to be a professional risk manager to get a complete risk evaluation of your portfolio. Now you can measure the risk of a single asset of your entire portfolio using a powerful tool called RiskGrades^TM, created by the RiskMetrics Group.

RiskGrades is calibrated to be more intuitive and easier to use than standard deviation or beta. And because RiskGrades is a standardized measure of volatility, it allows comparison of investment risk across all classes and regions.

RiskGrades captures all the components of market risk: equity, interest rate, currency, and commodity risk.

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Identify and measure your investments’ exposure to risk.

Create investment portfolios that match your tolerance for risk.

Avoid excessive concentrations and maintain diversification through balanced asset allocation.

Benchmark an investment's risk and return characteristics to hundreds of market indices such as the S&P 500 or the Nasdaq

Stress test your portfolio to ensure it can withstand unexpected equity, interest rate, and currency shocks

Estimate your potential loss in extreme market conditions.

Optimize portfolios. See first-hand, how investing in different sectors and asset classes helps to offset risk while contributing to higher returns.

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This chart shows the historical price of a particular stock lookup request. By viewing this chart in conjunction with the chart below, you can compare the stock's price history to its RiskGrade history.
Note that when the price of this stock dropped in mid-April, its RiskGrade actually increased. The disparity between the RiskGrade history and the stock price history acknowledged actual volatility and potential future volatility.
Understanding a how a security's RiskGrade fluctuates over time, you can determine if a stock is currently a higher or lower risk than it has been historically.

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RiskMetrics Group empowers institutions and their clients around the world to make better investment decisions. RiskMetrics Group's risk management and wealth management systems, services, and data are used by hundreds of leading financial institutions, multinational corporations and many of the world's central banks.

Open an account now for free access to the automated RiskGrades™ system with instant RiskGrades and comparison charts. (Find it in My SiebertNet under the Quick Links heading on your Personalized Resource Center.)

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