Quantora · Desk
Risk-Return Map
Every asset promises return; the question is how much risk you swallow to get it. This map plots each ticker by annualized return against volatility and colors it by Sharpe ratio - so the names that actually pay you for their risk rise to the top-left, and the ones that don't sink to the bottom-right.
Position on this map is destiny in portfolio theory. Up and to the left is the prize - high return for low volatility - while down and to the right is the trap: you're paying in risk without being paid in return. The color is the Sharpe ratio (return per unit of volatility, risk-free rate taken as zero here): green names earn their keep, red ones don't. The dashed rays from the origin are lines of equal Sharpe - anything on a steeper ray is more efficient. Remember this is backward-looking: a name can look glorious after a big run and still be a poor bet forward. Use it to compare the risk personalities of assets, not to pick winners.