Drawdown (economics)
The maximum drawdown is a measure commonly used in the financial world, for example. It represents the maximum cumulative loss is within a respective period and is represented generally as a percentage.
Formula
Example
A fund amounting to a low of the period under consideration 95 EUR. The highest price was reached before at 102 EUR. The result is ( in simplified form ):
(95 * 100/102 ) = -100 -6.86 %
- Financial Analysis
- Economic indicator