PRAAMS InvestWatch: white paper
  • InvestWatch -- intro
  • PRAAMS Ratio
  • Return factors
    • Valuation
    • Performance
    • Analyst view (stocks)
    • Market view (bonds)
    • Profitability
    • Growth
    • Dividends (stocks) and Coupons (bonds)
  • Risk factors
    • Default risk
    • Volatility (market risk under normal conditions)
    • Stress-test (market risk under stress conditions)
    • Selling difficulty / Liquidity
    • Country risks
    • Other risks
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Risk factors

The highest score (7 of 7) = the highest relative risk bucket

The 1-7 scale is standard in InvestWatch, and all the metrics are measured on a 1-7 scale. The higher the score, the higher the metric. A high return score means a top relative ranking of this asset versus the peers, i.e. high return potential. A high risk score also means top relative ranking, i.e. high risk. A high return or risk score does not necessarily imply that the asset is good or bad. The methodologies have been designed, validated and calibrated to have the highest predictive power when all 12 factors are considered. So, choosing one or two might not have the same predictive power.

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Last updated 12 months ago