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miohtama committed Mar 18, 2024
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When :term:`benchmarking <benchmark>` different :term:`portfolios <portfolio>` for :term:`Risk-adjusted return`, volatility is the fundamental
metric for various risk vs. rewards calculations.

:term:`Delta neutral` :term:`trading strategy` is a strategy that is immune to volatility: no matter which direction the price
moves, the strategy makes profit.

See also

- :term:`Standard deviation`
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- :term:`Risk-adjusted return`

- :term:`Delta neutral`

Compound Annual Growth Rate (CAGR)

CAGR, or Compound Annual Growth Rate, is a financial metric that measures the average annual growth rate of an investment over a specified period of time, typically longer than one year. It provides a smoothed-out view of an investment’s performance by accounting for compounding effects. In :term:`quantitative finance`, CAGR is used to compare performance of different portfolios. CAGR does not account for investment risk.
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