What is ‘Absolute Return Index’
A stock index designed to measure absolute returns. The absolute return index is actually a composite index made up of five other indexes. This index is used to compare the absolute returns posted by the hedge fund market as a whole against individual hedge funds.
Explaining ‘Absolute Return Index’
The hedge fund absolute return index (HFRX) measures the comprehensive overall returns of hedge funds. Since hedge funds explore unique investment strategies and seek to obtain absolute returns rather than focus on beating the benchmark, the HFRX is representative of all hedge fund strategies.
Absolute Return Index FAQ
What is absolute return rate?
Absolute return is the return that an asset accomplishes over a predefined period. This measure takes a gander at the depreciation and appreciation, communicated as a percentage, that an asset, for example, a stock or a shared asset, accomplishes over a given period.
How do you calculate absolute return?
Absolute return, also called Point-to-Point Returns is the increase or decrease that an investment achieves over a stated period. It is expressed in percentage terms, i.e. Absolute returns = 100* (Selling Price – Cost Price)/ (Cost Price)More items.
What is absolute return example?
The total return is the least difficult return metric that is utilized to measure how much increase or loss has been achieved from an investment. For instance, in the event that you had contributed $3500 of every asset and reclaimed when the worth was $4100, you would have made an increase of $.
What is absolute and relative return?
Absolute return is the increase or decrease that an investment achieves over a stated period. While Relative return is the difference between the absolute return and the performance of the market, which is measured by a benchmark, such as the S&P 500.
- Modelling the absolute returns of different stock indices: exploring the forecastability of an alternative measure of risk – onlinelibrary.wiley.com [PDF]
- Method and system for construction of a passive absolute return index – patents.google.com [PDF]
- The myth of the absolute-return investor – www.tandfonline.com [PDF]
- A VaR Black–Litterman model for the construction of absolute return fund-of-funds – www.tandfonline.com [PDF]
- Absolute return portfolios – www.sciencedirect.com [PDF]
- The Anatomy of Principal-Protected AbsoluteReturn Barrier Notes – jod.pm-research.com [PDF]
- Return-based classification of absolute return funds – link.springer.com [PDF]
- Absolute returns in commodity (natural resource) futures investments – www.sciencedirect.com [PDF]