Similar to Standard Deviation, but Downside Deviation only takes losing/negative periods into account. That´s why it does not penalize the program for higher than average return, but only for higher than average loss.
Downside Deviation
Similar to Standard Deviation, but Downside Deviation only takes losing/negative periods into account. That´s why it does not penalize the program for higher than average return, but only for higher than average loss.