There are two ways of describing the definition of the pain index:

• Numerically, the pain index is the mean value of the drawdowns over the entire analysis period. (See also the definition of the Drawdown statistic.)
• Visually, the pain index is the red area of the region that is enclosed by the horizontal line at zero percent and the drawdown line in the Drawdown chart:

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For additional detail, please see our white paper regarding Pain Index and Pain Ratio.