Quant charts explained: Quartile Chart

Displays the total return of an investment compared to a specified universe

What does the chart show?

The Quartile Chart provides comparison on the returns of products or portfolios relative to a specified universe.

The column consists of four quadrant regions, each representing a quartile (one fourth of the universe’s returns). Median return is represented by the line separating the middle two boxes. Each product is represented by a marker in the quartile chart.

It is also possible to get a sense of return dispersion across the universe by observing the range between top and bottom quartiles. Return dispersion varies as period is changed.

 

How to interpret the chart

Products higher in a column have performed better than products below them. A product in the top region/ box has performed in the top 25% of the universe.

When to use the chart

This chart is useful in showing the quartile where a product, benchmark or portfolio sits relative to other peers in the universe.

iRate specific

An appropriate universe should be selected to compare similar products. For portfolios/ diversified products we recommend selecting a universe with similar risk profile.

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