ERS’s Risk Ratings Can Drive Great Portfolios!
It’s TRUE | Buying low-risk stocks works better than betting on high-risk stocks.
Extensive backtesting of model portfolios using ERS’s proprietary risk ratings demonstrates that these model portfolios consistently beat the market, frequently by large multiples.
This chart shows that a continually rebalanced portfolio strategy selling stocks as risk rises and replacing with lower risk stocks such as one would do with real-life client assets accumulates significantly more wealth over time than using a commonly deployed approach of completely passive US Equity allocations.
Equity Risk Sciences’ hypothetical backtested examples are provided as illustrative examples only and do not represent the performance of actual client portfolios. See this page for further disclosures regarding ERS’s hypothetical backtests.
The ERS risk ratings, when used in selecting stocks, decrease the probability of investing in losers and increase the probability of winners. The ratings are highly effective and reliable.
In our benchmark studies, the lowest Risk Rated stocks consistently outperform the highest Risk Rated stocks over the following twenty-four and sixty months, as the charts to the right and below illustrate.
The two-year performances depicted in the chart to the right demonstrate on the whole that stocks with lower ERS risk ratings outperform stocks with higher ERS risk ratings.
The five-year performances depicted in the chart to the left demonstrate on the whole that stocks with lower ERS risk ratings outperform stocks with higher ERS risk ratings.
These studies use ERS’s composite ERI ratings to stratify the investment universe to compare high risk to lower risk stocks and their forward performance.
Equity Risk Sciences’ hypothetical backtested examples are provided as illustrative examples only and do not represent the performance of actual client portfolios.
See this page for further disclosures regarding ERS’s hypothetical backtests.
Equity Risk Sciences created 3 Risk Indicators:
Price Risk Indicator
Using an algorithmic approach to warranted valuation, this metric provides reliable ratings on the probability of a company’s stock rising or falling.
Financial Risk Indicator
Using financial statement data, the Financial Risk Indicator analyzes a company’s historical trends and current situation to assess its overall strength and durability.
Equity Risk Indicator
This comprehensive indicator combines all of ERS’s algorithms to provide our benchmark rating.
Enduring Alpha™ Portfolio.
50% More Wealth than the S&P 500.
This is just the start. Let us build on these results to create something specific to YOUR clients.
“Computers are incredibly fast, accurate and stupid;
humans are incredibly slow, inaccurate and brilliant;
together they are powerful beyond imagination.”
–Albert Einstein
How We Serve You
Equity Risk Sciences serves financial institutions and investment advisors. We are dedicated to seeing your business soar and excel. With our technology, you will reach your business goals with greater certainty and, perhaps, greater success than you have ever imagined.
Call us and evaluate our evidence, then decide.
