Reference Materials
Pain Index
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:
To view our quick tip video on Pain Index, click the following link: http://www.styleadvisor.com/sites/default/files/quick_tip_video/pain_ind....
For additional detail, please see our white paper regarding Pain Index and Pain Ratio.