Downside Risk

Filed Under »
Dictionary Says

Definition of 'Downside Risk'

An estimation of a security's potential to suffer a decline in price if the market conditions turn bad.
Investopedia Says

Investopedia explains 'Downside Risk'

You can think of this as an estimate of the amount that you could lose on a stock or other investment.

Related Definitions

  • Bear

    An investor who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a ...
    Read More »
  • Risk

    The chance that an investment's actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment. Different versions of risk ...
    Read More »
  • Upside

    The potential dollar or percentage amount by which the market or a stock could rise. This is basically an educated guess on how high a stock could go in the near future.
    Read More »
    • Guaranteed Minimum Withdrawal Benefit - GMWB

      A type of option that annuitants can purchase for their retirement annuities. This specific option gives annuitants the ability to protect their retirement investments against downside ...
      Read More »
    • Semivariance

      A measure of the dispersion of all observations that fall below the mean or target value of a data set. Semivariance is an average of the squared deviations of values that are less than ...
      Read More »
    • Downside

      The negative movement in the price of a security, sector or market. Downside can also refer to economic conditions and it describes periods when an economy has either stopped growing or ...
      Read More »

Articles Of Interest

Partner Links