- Exploring the Omega Risk-Return Measure: Bricks, Shares or Gold Bars?
MOUNTAIN VIEW, California, Nov. 25, 2014 /PRNewswire/ -- Investors are interested in two things -- the rate of return, and the risk taken to get this return.
Propertini have gone beyond the traditional Sharpe Ratio, adopted as the key benchmark for asset managers, and applied a complete risk-return analysis across the primary asset classes. This technique is far more sophisticated than the Sharpe Ratio and yet far simpler to describe. It all comes down to one very elegant number.
The research shows:
Co-author of the original mathematical derivation and publication of the Omega Ratio, Con Keating, says "It is really very stimulating to see Omega functions brought to bear, as measures of investment efficiency, on the real estate sector."
Vice President at Propertini, Aled Davies, explains "It was vital to conduct rigorous research to bring clarity and a clearer perspective on the risk-rewards relationship of residential property investing. The best way of doing this is to provide a risk-return ranking for different return targets representing different investor types. We have applied some serious mathematics to this problem yet the results are very simple to understand and apply. We believe this can provide insight and understanding to investors in all asset classes and we hope others build on this work."
A full package of details is provided online (including a technical aside which isn't necessary to understand this):
Infographic:
https://propertini.com/press/omega/infographic-omega-risk-return-measure.pdf
Images: (including ranking table):
https://propertini.com/press/omega/images.zip
Full press release (including background notes):
https://propertini.com/press/omega/safe-as-houses-better-way-to-measure-investment-efficacy.pdf
Demonstration spreadsheet:
https://propertini.com/press/omega/omega-performance-spreadsheet-calculation.xlsx
About Propertini
propertini.com is a global real estate search engine operated by Propertini, Inc. Propertini helps users search, select and share residential real estate worldwide. Propertini bases all of its operating decisions on a core set of principles: propertini.com/principles
Propertini, Inc.
800 West El Camino Real, Mountain View, California, 94040, USA
Email:
info@propertini.com
Web:
propertini.com
For more information & images please visit propertini.com/press
Media contact:
Kimberly Okada
kim@propertini.com
