DEFINITION of 'RiskGrades - RG'
A trademarked method for calculating the risk of an asset portfolio. RiskGrades are based on a variance-covariance 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:
BREAKING DOWN '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: