Tail-risk diversifiers

Holdings expected to hold their value or rise during severe market declines, which can offset losses elsewhere in a portfolio. Examples discussed in research include long volatility positions, trend-following strategies and high-quality government bonds.

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Related terms

Risk measures

• Active tail hedging
• Conditional value at risk
• Customer acquisition cost
• Fat tails
• Long-tail risk
• Regulatory compliance
• Risk management
• Skewness
• Stress testing
• Value at risk