Value at risk

Value at Risk
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Value at risk, or VaR, is a means of measuring the amount of financial risk present in a specific investment, typically a single stock or a portfolio of stocks.

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Value at Risk (VAR)
VAR is the technique to estimate the probability of portfolio losses based on statistical of volatilities and historical prices. It is estimated using a prespecified probability that the actual loss will be larger.
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The point of a value at risk goes back to the investment portfolio. Investing is a process that is anticipated to generate revenue far more often than creating a loss.

Value at Risk (VaR) Total value of the potential risk of loss while holding a specific market position.

Value at risk. The expected loss from an adverse market movement, with a specified probability over a particular period of time.

Value at Risk (VaR): VaR is expressed as the worst case loss that could be expected to be incurred from a given portfolio as a result of movements in identified risk parameters, over a nominated time period within a specified level of probability.

Value at Risk (VaR) - Measures risk in terms of potential financial losses on the current portfolio.

VAR (Value At Risk)
Another Risk-Management concept is VAR, nowadays becoming increasingly popular. Most leading investment and trading houses use VAR as one of their main risk measures in routine risk-management operations.

Value at Risk : The New Benchmark for Controlling Market Risk
Philippe Jorion / published: August 1996 / Hardcover / 332 pgs.

Value at Risk (VaR)
A measure of exposure within a given portfolio, which attempts to estimate how much the portfolio would be expected to lose, given the recent behavior of the securities contained therein.

Risk-Adjusted Return on Capital (RAROC): Another measure of risk-adjusted profitability, derived as the ratio between P/L and value at risk.

Value At Risk VAR. A technique which uses the statistical analysis of historical market trends... value averaging An investment strategy designed to reduce volatility, which involves purchasing...

A far more sophisticated extension of this model is the Value at Risk method, which helps to determine the actual risk exposure to a portfolio of several currencies.
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The Probability of not achieving a Portfolio expected return. Related: Value at risk.

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The probability of not achieving a portfolio expected return. Related: Value at risk.
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British equivalent of the US prime rate.

used in the context of claiming tax deductions. For example, a person can claim a tax deduction in a limited partnership if the taxpayer can show it is at risk of never realizing a profit and of losing its initial investment. See: Value at risk.

Firms dealing in forex put limits, not only on the overall volume of their foreign exchange position, but also on their estimated potential losses during, say, the next 24 hours, which they estimate through calculations of "value at risk" (VAR), ...

See also: Risk, Market, Investment, Trading, Analysis