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Volatility Measures Addendum: How To Beat The S&P500 In One Move

Addendum Date: 12/12/2016

For those readers of: How To Beat The S&P500 In One Move

Here are the volatility and risk measures:

There are some differences to be noted; however, I do like the 10 year Sharpe Ratio that gives the impression that the risk-adjusted return is actually better give the higher Sharpe Ratio.

(A risk-adjusted measure developed by William F. Sharpe, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund's risk-adjusted performance.)

I also like the extra total return (NYSEARCA:RSP) for a little more volatility that I don't even realize. The 10 year is remarkable and the one year is looking really good too.

  Standard Deviation   Sharpe Ratio Total Return %

% Variance

  RSP SPY   RSP SPY RSP SPY RSP vs SPY
10 YEAR 17.91 15.24   0.47 0.46 115.6 96.27 20.08%
5 YEAR 11.05 10.33   1.30 1.34 104.6 98.95 5.71%
3 YEAR 11.39 10.74   0.80 0.84 34.69 34.43 0.76%
1 YEAR           18.40 14.43 27.51%
BETA 1.03 1.00            
                 
Source: MorningStar                
Source: Total Return: Y Charts              

Disclosure: I am/we are long RSP.

Additional disclosure: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, portfolio asset mix, diversification. Readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended. Investing in public securities is speculative and involves risk, including possible loss of principle. The reader of this article must determine whether or not any investments mentioned in this article are suitable for their portfolio, risk tolerance and accepts responsibility for their decisions.