Detailed in this article written by our trading principals, Jeffery E. Lay, CMT and David C. Stendahl, The Underwater Mass Index is the quintessential tool for measuring downside risk. More than merely measuring total maximum drawdown, UMI calculates the double jeopardy experienced by an investment portfolio which suffers losses which last for extended periods of time.
Click on the tabs below for a dynamic presentation on the power of true portfolio diversification based on the UMI risk measure.
