Relative Return Performance of Different Strategies in Various Markets
Constant Mix | Buy & Hold | CPPI | |
---|---|---|---|
Market Condition | |||
Up | Underperform | Outperform | Outperform |
Flat (oscillating) | Outperform | Neutral | Underperform |
Down | Underperform | Outperform | Outperform |
Investment Implications | |||
Payoff Curve | Concave | Linear | Convex |
Portfolio Insurance | Selling Insurance | None | Buying Insurance |
Multiplier | 0 < m < 1 | m = 1 | m > 1 |
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