A Guide to StatFACTS

Investment analysis can be easy. Zephyr Associates has developed the StatFACTS to help you understand the plain-English meanings and practical applications of key performance statistics. Moreover, Zephyr has organized the statistics into a logical, useful framework. As Albert Einstein purportedly said, “Everything should be made as simple as possible, but not simpler.”

StatFACTS are not for redistribution. If you are interested in purchasing redistribution rights or custom-branded versions, please contact sales at sales@informais.com or 1-800-789-5323.

What Stats Measure

Despite a seemingly overwhelming number of metrics, virtually every statistic falls into one of three categories:

  • Return: the higher the better
  • Risk: the lower the better
  • Return vs. risk trade-off: the higher the better

What Does One Mean By Risk?

Risk can be broken into four broad categories of measurement:

  • Volatility: volatility risk measures how uncertain or unpredictable an investment’s returns are
  • Benchmark-Relative: benchmark-relative risk measures performance of managers against an appropriate passive index
  • Capital preservation: also known as drawdown risk, capital preservation risk is simply the risk of losing money in an investment
  • Tail: sometimes called “black swan” risk, tail risk is defined as low probability, high impact events

Zephyr StatMAP

As a part of the StatFACTS series, Zephyr also introduces the StatMAP. The StatMAP offers a way to visualize each statistic in terms of metric versus risk type. Click any StatFACT title in the StatMAP grid below for more information.


Informa Investment Solutions is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.