Anonymous asked in Business & FinancePersonal Finance · 2 months ago

Is annual volatility of 19.35% high? Is an annual return of 21.59% good?

I am doing a presentation on my portfolio and I have calculated my annualized volatility to be 19.35%, but I am not sure if this is a low volatility or it is pretty high? Does this mean that my portfolio isn't that risky?

Also, is an annualized return of 21.59% pretty decent? How would it compare to other returns? Does it show that my portfolio is doing pretty well?

Thank you!

5 Answers

  • 2 months ago

    Historically a volatility of 19.35% is pretty high. A return of 21.59% is very good.  However, if we are talking about really short time frames then its hard to say.

  • fcas80
    Lv 7
    2 months ago

    You say you calculated your volatility at 19%, but you don't explain how you did it or what it is.  

    If it is standard deviation, then yes it is high.

    The 2019 return for the S&P 500 was 29%, its best performance since 2013.

    If you achieved 29% for 2019, that's great, but it is no better than the S&P.  If your 29% is a 10-year average, then you should be managing other people's money for a fee.

  • 2 months ago

    A return of more than 21% per annum is excellent.

    But what do you mean by "volatility"? It usually refers to how fast stocks and shares sell -- high volatility ==> high turnover.

  • Anonymous
    2 months ago

    Annual return of 21.59% over what period of time?  And what type of investments?   How in the hell would we know if your number is good unless we can compare it to benchmarks for the same time period?

    I don't understand how your annual volatility can be lower than your average annual return.  Again, without knowing what you're investing in and what time period you're referring to, you might as well be asking if a fish is better than a bicycle.

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  • Anonymous
    2 months ago

    That is not something I have every paid attention to in my 35 years of investing.

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