Var: From basics to breakthroughs

From basics to breakthroughs, here's everything about Value at Risk in a nutshell. Protect your assets with these insights. VaR is a statistical metric that forecasts the highest possible loss and the probability of it occurring over a period. Learn how to calculate VaR using variance-covariance, Monte Carlo simulation, and historical methods, and see the pros and cons of VaR. Value-at-Risk (VaR) is a statistical measure that quantifies the potential maximum loss an investment portfolio could experience at a certain confidence level over a specified time horizon. Value at Risk, VaR is yet another metric discussed so very often in the finance circles. It represents the losses from the portfolio expected to occur over a given period. This happens to be an estimation, but during times when decisions are made, while the market happens to become highly volatile, it still comes in very handy. The core advantage of VaR is its simplicity, which makes it the cornerstone of risk management for understanding investor exposure and comparing various portfolios or ...