Notitia
VaR, correlations, hedging and strategic allocation.
✦ You invest €53,000; compounding adds €55,959 - 51.4 % of the final capital. Waiting 5 more years would add €51,964.
Educational simulation - not investment advice. Returns are not guaranteed.
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A €1m equity portfolio has 1.2% daily volatility. What loss should it not exceed 95 days out of 100?
VaR tells you the loss on an ordinary bad day, not a crash day: real tails are fatter. A pro complements it with Expected Shortfall and stress tests.