What is Investment Technology Group Daily Value At Risk (USD Mil)?
Daily Value At Risk (USD Mil) calculates the maximum loss expected (or worst case scesnario) on an investment under a daily basis.
The historical rank and industry rank for Investment Technology Group's Daily Value At Risk (USD Mil) or its related term are showing as below:
ITG's Daily Value At Risk (USD Mil) is not ranked *
in the Capital Markets industry.
Industry Median: * Ranked among companies with meaningful Daily Value At Risk (USD Mil) only.
Investment Technology Group Daily Value At Risk (USD Mil) Historical Data
The historical data trend for Investment Technology Group's Daily Value At Risk (USD Mil) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Investment Technology Group Daily Value At Risk (USD Mil) Chart
Investment Technology Group (NYSE:ITG) Daily Value At Risk (USD Mil) Calculation
There are two common methods to calculate the Daily VAR: the variance-covariance method and the historical simulation.
The variance-covariance method is easier because we only need to estimate two factors: average return and standard deviation. However, it assumes returns are well-behaved according to the symmetrical normal curve and that historical patterns will repeat into the future. The formula is:
VAR
=
[ Expected Weighted Return of the Portfolio
−
( z-score of the confidence interval
*
standard deviation of the portfolio )]
*
portfolio value
The historical simulation method improves on the accuracy of the VAR calculation, but requires more computational data. It also assumes that "past is prologue." The Monte Carlo simulation is complex but has the advantage of allowing users to tailor ideas about future patterns that depart from historical patterns.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Investment Technology Group (NYSE:ITG) Daily Value At Risk (USD Mil) Explanation
Daily Value At Risk (USD Mil) calculates the maximum loss expected on an investment during a day with a certain confidence level. Value at Risk (VAR) is the maximum loss expected on an investment over a given time period and given a specified degree of confidence. It answers the question: "What is the worst loss that I can expect during a period with a certain confidence level?" This metric is most commonly used by investment and commercial banks to determine the extent and occurrence ratio of potential losses in their institutional portfolios.
For investment banks, the Daily VAR reflects its risk-control ability. Higher Daily VAR means that you are facing a higher risk of losing your money. Lower Daily VAR represents the opposite. However, Daily VAR is just an estimate under a certain confidence level. Extreme cases can occur under a very small probability. Different calculating methods of Daily VAR can also lead to different results for the same company.
Investment Technology Group Daily Value At Risk (USD Mil) Related Terms
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Investment Technology Group (Investment Technology Group) Business Description
Investment Technology Group Inc is a United States-based brokerage and financial technology company. The company provides a wide range of products and services, including electronic brokerage, research, sales and trading, and platforms and analytics. The company generates over half of its revenue from electronic brokerage, research, and sales and trading. The company has a global presence, with a network of offices in North America, Europe, and Asia-Pacific. Its business is categorized into four reporting segments: U.S. operations, Canadian operations, European operations, and Asia-Pacific operations. The U.S. is its largest market.
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