The average annual return is geometric mean return of the strategy since the beginning of the dataset. It is the primary method of gauging long-term performance.
This represents the compound growth rate of the strategy. A high average annual return is desirable but investors should be aware of a highly volatile strategy, as they may not be able to cope with the emotional rollercoaster. The Sharpe ratio is a performance metric which includes both return and volatility.
Strategy
Value
Technical
Quality
Dividend
Health
Persona
Average Annual Return
Definition
The average annual return is geometric mean return of the strategy since the beginning of the dataset. It is the primary method of gauging long-term performance.
This represents the compound growth rate of the strategy. A high average annual return is desirable but investors should be aware of a highly volatile strategy, as they may not be able to cope with the emotional rollercoaster. The Sharpe ratio is a performance metric which includes both return and volatility.
Strategy
Value
Technical
Quality
Dividend
Health
Persona