Horizontal Line
What is a Horizontal Line? A horizontal line is a line drawn touching the support or resistance level on a price chart in technical analysis. Horizontal lines are commonly used to identify price breakouts and are deemed essential when analyzing trades. In geometry analysis, a horizontal line is a straight line with a zero slope...
Financial Crisis
What is a Financial Crisis? A financial crisis is defined as any situation where one or more significant financial assets – such as stocks, real estate, or oil – suddenly (and usually unexpectedly) loses a substantial amount of their nominal value. Common examples of a financial crisis include financial market crashes – either widespread or...
Sortino Ratio
What is the Sortino Ratio? The Sortino ratio is a risk-adjustment metric used to determine the additional return for each unit of downside risk. It is computed by first finding the difference between an investment’s average return rate and the risk-free rate. The result is then divided by the standard deviation of negative returns. Ideally,...
Socially Responsible Investment (SRI)
What is Socially Responsible Investment (SRI)? Socially responsible investment, or SRI, is a strategy that considers not only the financial returns from an investment but also its impact on environmental, ethical or social change. Identifying which ventures to put their hard-earned money into can be difficult for potential investors. It is why such investors consider...
Fisher Effect
What is the Fisher Effect? The Fisher Effect refers to the relationship between nominal interest rates, real interest rates, and inflation expectations. The relationship was first described by American economist Irving Fisher in 1930. The relationship is described by the following equation: (1+i) = (1+r) * (1+π) Where: i = Nominal Interest Rate r =...
