![]() Such a stock is sensitive to the various economic phases like recession, boom, expansion, contraction, trough, peak and recovery. Most of the stocks are cyclical stocks Cyclical Stocks A cyclical stock refers to that share whose price fluctuates with the change in overall macroeconomic conditions. ![]() It takes only a three year period to calculate the Calmar ratio.It is similar to the Sharpe ratio Sharpe Ratio Sharpe Ratio, also known as Sharpe Measure, is a financial metric used to describe the investors’ excess return for the additional volatility experienced to hold a risky asset.It considers maximum drawdown instead of the standard deviation of the portfolio, which is a more relevant component in decision making.read more that has happened in the past three years. It is expressed as the difference between the highest, i.e., the peak value of that asset, and the lowest, i.e., the trough value of the same. It gives an investor a guide in selecting their investment strategy as it also considers the drawdown Drawdown A drawdown is defined as the percentage of decline in the value of a security over a period before it bounces back to the original value or beyond. ![]()
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