Risk vs Return

Each sector plotted by total return against volatility, so both can be read at once. Sectors toward the upper left delivered more return with less variation over the period selected; those to the lower right varied more for less. A return-to-volatility ratio expresses the same relationship as a single number for each sector.

Risk-Return Summary

How to read this

Upper-left — higher return, lower volatility. These sectors historically delivered more return per unit of volatility.

Lower-right — lower return, higher volatility. These sectors historically delivered lower returns relative to their level of volatility.

The return-to-volatility ratio in the summary cards expresses return per unit of volatility. A higher figure means more return was delivered for the same amount of variation.

Sectors on the left of the chart varied less over the period; those on the right varied more, independently of what they returned.

Worth noting: Higher returns have historically come with higher volatility. This chart shows how much return accompanied each level of volatility over the selected period.