Nasdaq (LTS:0K4T) Daily Value At Risk (USD Mil) : 0.00 (As of . 20)

Nasdaq Daily Value At Risk (USD Mil) Chart

Nasdaq  (LTS:0K4T) 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:

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.

Nasdaq  (LTS:0K4T) 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.

Nasdaq Daily Value At Risk (USD Mil) Related Terms

Thank you for viewing the detailed overview of Nasdaq's Daily Value At Risk (USD Mil) provided by GuruFocus.com. Please click on the following links to see related term pages.

Nasdaq (LTS:0K4T) Business Description