{"id":1847,"date":"2018-09-24T13:55:42","date_gmt":"2018-09-24T18:55:42","guid":{"rendered":"https:\/\/www.rixtrema.com\/blog\/?p=1847"},"modified":"2020-02-22T07:38:04","modified_gmt":"2020-02-22T12:38:04","slug":"what-you-need-to-know-about-the-crash-rating-in-portfolio-crash-testing","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/what-you-need-to-know-about-the-crash-rating-in-portfolio-crash-testing\/","title":{"rendered":"What you need to know about the Crash Rating in Portfolio Crash Testing"},"content":{"rendered":"<p><span style=\"color: #000000;\">Crash Rating\u00a0is a number used to measure the risk of a portfolio. It is a representation of the loss a portfolio may incur during our worst stress-testing scenarios. Here are 5 things\u00a0that you need to know about the Crash Rating in<\/span> <a href=\"https:\/\/www.rixtrema.com\/blog\/?s=Portfolio+Crash+Testing\"><strong><span style=\"color: #0000ff;\">Portfolio Crash Testing<\/span><\/strong><\/a>:<\/p>\n<p><span style=\"color: #000000;\">1. A portfolio\u2019s crash rating can rank from 1 to 100, with 1 being the lowest in terms of risk and 100 being the highest.<\/span><\/p>\n<p><span style=\"color: #000000;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1849\" src=\"https:\/\/www.rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image.png\" alt=\"\" width=\"769\" height=\"241\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image.png 769w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image-300x94.png 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image-768x241.png 768w\" sizes=\"auto, (max-width: 769px) 100vw, 769px\" \/><\/span><\/p>\n<p><span style=\"color: #000000;\">2. A crash rating is calculated by taking the sum of the three largest losses that a portfolio incurs among all stress-testing scenarios.<\/span><\/p>\n<p><span style=\"color: #000000;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1850\" src=\"https:\/\/www.rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image3.png\" alt=\"\" width=\"763\" height=\"767\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image3.png 763w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image3-150x150.png 150w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image3-298x300.png 298w\" sizes=\"auto, (max-width: 763px) 100vw, 763px\" \/><\/span><\/p>\n<p><span style=\"color: #000000;\">3. The S&amp;P 500 ranks at a 72 on our current Crash Rating scale:<\/span><\/p>\n<p><span style=\"color: #000000;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-1851\" src=\"https:\/\/www.rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/The-SP-500-ranks-at-a-72-on-our-current-Crash-Rating-scale-1024x136.png\" alt=\"\" width=\"1024\" height=\"136\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/The-SP-500-ranks-at-a-72-on-our-current-Crash-Rating-scale-1024x136.png 1024w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/The-SP-500-ranks-at-a-72-on-our-current-Crash-Rating-scale-300x40.png 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/The-SP-500-ranks-at-a-72-on-our-current-Crash-Rating-scale-768x102.png 768w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/The-SP-500-ranks-at-a-72-on-our-current-Crash-Rating-scale.png 1342w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/span><\/p>\n<p><span style=\"color: #000000;\">4. Our Crash Rating can be harmonized with any other risk score out there. To harmonize it with the risk score you are using, you simply need to plug in your target score for each of the following portfolio allocations:<\/span><\/p>\n<p><span style=\"color: #000000;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1852\" src=\"https:\/\/www.rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/Our-Crash-Rating-can-be-harmonized-with-any-other-risk-score-out-there.png\" alt=\"\" width=\"736\" height=\"705\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/Our-Crash-Rating-can-be-harmonized-with-any-other-risk-score-out-there.png 736w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/Our-Crash-Rating-can-be-harmonized-with-any-other-risk-score-out-there-300x287.png 300w\" sizes=\"auto, (max-width: 736px) 100vw, 736px\" \/><\/span><\/p>\n<p><span style=\"color: #000000;\">5. As the markets are always changing, our Crash Rating is constantly updated with our Portfolio Risk Model to make sure that your portfolios always have the most up-to-date risk measurement with today\u2019s markets.<\/span><\/p>\n<p><span style=\"color: #000000;\"><em>Portfolio Crash Testing (PCT) is different from all other stress testing systems (including those available to institutions) for numerous reasons. Here are\u00a0<\/em><\/span><span style=\"color: #0000ff;\"><em><strong><a style=\"color: #0000ff;\" href=\"https:\/\/www.rixtrema.com\/blog\/14-reasons-why-financial-advisors-should-use-portfolio-crash-testing\/\">14 Reasons Why Financial Advisors Should Use Portfolio Crash Testing<\/a><\/strong><\/em><\/span><\/p>\n<p><a href=\"https:\/\/www.rixtrema.com\/videoplay\/videoplay.html?video=110234076&amp;source=blog\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1853 size-full\" src=\"https:\/\/www.rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/Second-Banner-1.png\" alt=\"\" width=\"800\" height=\"418\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/Second-Banner-1.png 800w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/Second-Banner-1-300x157.png 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/Second-Banner-1-768x401.png 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crash Rating\u00a0is a number used to measure the risk of a portfolio. It is a representation of the loss a portfolio may incur during our worst stress-testing scenarios. Here are 5 things\u00a0that you need to know about the Crash Rating in Portfolio Crash Testing: 1. A portfolio\u2019s crash rating can rank from 1 to 100,&#8230; <\/p>\n<div class=\"clear\"><\/div>\n<p><a href=\"https:\/\/rixtrema.com\/blog\/what-you-need-to-know-about-the-crash-rating-in-portfolio-crash-testing\/\" class=\"excerpt-read-more newsstand-button\">Read More<\/a><\/p>\n","protected":false},"author":3,"featured_media":1848,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[192,191,179],"tags":[],"class_list":["post-1847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-risk-management","category-risk-tolerance","category-using-larkspur-rixtrema-tools"],"jetpack_featured_media_url":"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image2.png","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.9.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What you need to know about the Crash Rating in Portfolio Crash Testing<\/title>\n<meta name=\"description\" content=\"Crash Rating\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rixtrema.com\/blog\/what-you-need-to-know-about-the-crash-rating-in-portfolio-crash-testing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What you need to know about the Crash Rating in Portfolio Crash Testing\" \/>\n<meta property=\"og:description\" content=\"Crash Rating\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rixtrema.com\/blog\/what-you-need-to-know-about-the-crash-rating-in-portfolio-crash-testing\/\" \/>\n<meta property=\"og:site_name\" content=\"RiXtrema.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LarkspurRiXtrema\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-09-24T18:55:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-22T12:38:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2018\/09\/image2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"759\" \/>\n\t<meta property=\"og:image:height\" content=\"768\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@RiXtrema\" \/>\n<meta name=\"twitter:site\" content=\"@RiXtrema\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"1 minute\">\n<!-- \/ Yoast SEO Premium plugin. -->","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/1847","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/comments?post=1847"}],"version-history":[{"count":6,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/1847\/revisions"}],"predecessor-version":[{"id":6155,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/posts\/1847\/revisions\/6155"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/media\/1848"}],"wp:attachment":[{"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/media?parent=1847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/categories?post=1847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rixtrema.com\/blog\/wp-json\/wp\/v2\/tags?post=1847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}