Comment
Risk lies in the eye of the beholder.
Explanation
This is the standard deviation of monthly returns over 25 years.
Further Reading
Check out our strategy of Dynamic Diversification for selecting the most
effective combinations of the major asset classes. |
|
Definitions of Risk
Investors RouteMap provides assistance in
assessing three dimensions of risk.
Risk assessment involves a high degree of subjective
judgement. Value is subject to many differing interpretations, of which we have chosen
just one set of possibilities. Overvalued assets may continue to show good momentum, and
conversely assets that represent good value may display poor momentum. As a result of
structural factors, such as the systematic under-recording of profits in some countries,
it may often be less sensible to look at valuation of shares compared to peers and more
meaningful to consider valuation relative to their own past, as this service does.
As regards volatility, that may change over time. For example after a market crash
certain assets may appear to be riskier owing to an increase in volatility, whereas they
may then provide exceptional value and, once an upturn begins, also offer good momentum as
well. Of all three dimensions, volatility is the only one that can be defined objectively.
Volatility
Sorted by lowest stock market volatility at the
top
|
Countries & Regions |
Currency |
Bonds |
Shares |
|
|
. |
. |
. |
. |
|
|
WORLD |
. |
2.5% |
4.2% |
|
|
WORLD EX JAPAN |
. |
2.5% |
4.2% |
|
|
GROUP OF SEVEN |
. |
2.7% |
4.3% |
|
|
EUROPE |
. |
2.3% |
4.4% |
|
|
EUROPE EX UK |
. |
2.3% |
4.5% |
|
|
WORLD EX EUROPE |
. |
3.7% |
4.5% |
|
|
UNITED STATES |
1.4% |
3.8% |
4.5% |
|
|
WORLD EX US |
. |
2.5% |
4.5% |
|
|
EURO-ZONE |
2.5% |
2.3% |
4.6% |
|
|
CANADA |
1.8% |
3.8% |
4.8% |
|
|
NETHERLANDS |
2.6% |
3.1% |
4.9% |
|
|
DENMARK |
2.6% |
3.2% |
4.9% |
|
|
SWITZERLAND |
3.0% |
3.8% |
5.0% |
|
|
JAPAN |
2.8% |
7.6% |
5.1% |
|
|
GERMANY |
2.8% |
3.3% |
5.1% |
|
|
BELGIUM |
2.8% |
3.3% |
5.2% |
|
|
NEW ZEALAND |
2.9% |
4.9% |
5.5% |
|
|
SWEDEN |
2.7% |
3.3% |
5.9% |
|
|
AUSTRALIA |
2.8% |
3.9% |
5.9% |
|
|
FRANCE |
2.6% |
3.2% |
5.9% |
|
|
AUSTRIA |
2.7% |
2.4% |
6.0% |
|
|
EMERGING MARKETS |
.. |
. |
6.1% |
|
|
SOUTH AFRICA |
5.1% |
4.2% |
6.1% |
|
|
IRELAND |
2.5% |
4.9% |
6.2% |
|
|
CZECH REPUBLIC |
2.8% |
... |
6.2% |
|
|
SPAIN |
2.1% |
3.7% |
6.3% |
|
|
UNITED KINGDOM |
2.9% |
4.5% |
6.4% |
|
|
ASIA |
. |
. |
6.7% |
|
|
INDIA |
3.0% |
.. |
7.1% |
|
|
CHILE |
3.8% |
. |
7.2% |
|
|
FINLAND |
2.7% |
4.6% |
7.3% |
|
|
ITALY |
2.5% |
3.7% |
7.4% |
|
|
ISRAEL |
1.8% |
. |
7.6% |
|
|
SINGAPORE |
1.6% |
. |
7.9% |
|
|
EAST EUROPE |
. |
. |
8.0% |
|
|
KOREA |
3.4% |
5.6% |
8.2% |
|
|
MALAYSIA |
2.1% |
. |
8.7% |
|
|
NORWAY |
2.4% |
3.8% |
8.9% |
|
|
THAILAND |
3.0% |
. |
8.9% |
|
|
TAIWAN |
1.7% |
. |
9.3% |
|
|
LATIN AMERICA |
. |
. |
9.9% |
|
|
PORTUGAL |
2.8% |
4.5% |
10.0% |
|
|
ARGENTINA |
1.5% |
.. |
10.2% |
|
|
HONG KONG |
1.7% |
. |
10.8% |
|
|
INDONESIA |
7.7% |
. |
11.2% |
|
|
POLAND |
1.7% |
. |
11.5% |
|
|
HUNGARY |
2.0% |
. |
12.0% |
|
|
GREECE |
2.6% |
. |
12.0% |
|
|
BRAZIL |
1.9% |
. |
12.3% |
|
|
MEXICO |
4.5% |
. |
12.8% |
|
|