DEFINITION of 'RiskGrades  RG'
A trademarked method for calculating the risk of an asset portfolio. RiskGrades are based on a variancecovariance approach that measures the volatility of assets or asset portfolios as the scaled standard deviations of the returns.
More complex RiskGrades calculations allow for a few additional concepts:
INVESTOPEDIA EXPLAINS 'RiskGrades  RG'
RiskGrades were developed by JPMorgan. You can use RiskGrades to determine the level of risk in your portfolio based on the following numbers:
RELATED TERMS

Unsystematic Risk
Company or industry specific risk that is inherent in each investment. ... 
Systematic Risk
The risk inherent to the entire market or entire market segment. ... 
Variance
The spread between numbers in a data set, measuring Variance ... 
RiskAdjusted Return
A concept that refines an investment's return by measuring how ... 
Portfolio
A grouping of financial assets such as stocks, bonds and cash ... 
Risk
The chance that an investment's actual return will be different ...
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