{"id":1478,"date":"2025-06-29T22:50:49","date_gmt":"2025-06-29T22:50:49","guid":{"rendered":"https:\/\/diversiview.online\/help\/?p=1478"},"modified":"2025-09-23T07:11:19","modified_gmt":"2025-09-23T07:11:19","slug":"finding-maximum-drawdown-for-a-security-in-diversiview","status":"publish","type":"post","link":"https:\/\/diversiview.online\/help\/finding-maximum-drawdown-for-a-security-in-diversiview\/","title":{"rendered":"Finding Maximum Drawdown for a Security in Diversiview"},"content":{"rendered":"\n

A maximum drawdown (MDD) measures the maximum fall in the value of the investment, as given by the difference between the value of the lowest trough and that of the highest peak before the trough. The MDD Period of Recovery (or Recovery Time) measures how many calendar days after the lowest trough the investment took to climb back up to the value of the previous highest peak.<\/p>\n\n\n\n

See a visual definition below, and check out the two examples later on the page.<\/p>\n\n\n\n

\"A
Image copyright of the Corporate Finance Institute<\/figcaption><\/figure>\n\n\n\n

MDD is calculated over a long time period when the value of an asset or an investment has gone through several boom-bust cycles. In Diversiview we calculate MDD over the past 3 years, in line with the investment expected return (historical) and investment risk (volatility) that are calculated over the same period of time. <\/p>\n\n\n\n

Where to find MDD (Maximum Drawdown) for a security in Diversiview<\/h2>\n\n\n\n

STEP 1 <\/h3>\n\n\n\n

For any security, navigate to its Explore page. You can do that from the main menu (see Option 1 below), or from any portfolio page by clicking on the Explore button (see Option 2 below).<\/p>\n\n\n\n

\"How
Option 1 – Explore any security in Diversiview from the main menu (log in not required)<\/figcaption><\/figure>\n\n\n\n
\"How
Option 2 – Explore any security in Diversiview from the portfolio analysis page (login required)<\/figcaption><\/figure>\n\n\n\n

STEP 2<\/h3>\n\n\n\n

Navigate to the Past Performance section on the security Explore page, and find the 3 year MDD (Maximum Drawdown) and the MDD-RT (Maximum Drawdown Recovery Time) values.<\/p>\n\n\n\n

\"Image
Example MDD and MDD-RT for a security in Diversiview<\/figcaption><\/figure>\n\n\n\n

Examples of MDD scenarios in Diversiview<\/h2>\n\n\n\n

Example 1 – A stock that has recovered the Maximum Drawdown value<\/h3>\n\n\n\n

Microsoft Corporation Common Stock (US:MSFT<\/strong>)<\/p>\n\n\n\n

As at 27 June 2025, the Maximum Drawdown (MDD) for MSFT (Microsoft) was 26.99%, between 15 August 2022 and 3 November 2022. The stock only recovered after 174 days (approx 5.8 months), on 26 April 2023 when value was back to the value it started to fall from in August 2022.<\/p>\n\n\n\n

\"Image
Example MDD and MDD-RT calculations for a stock that has recovered from the maximum drawdown in the past 3 years.<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Example 2 – A stock that has not recovered the Maximum Drawdown value<\/h3>\n\n\n\n

BHP Group Ltd (ASX:BHP<\/strong>)<\/p>\n\n\n\n

As at 27 June 2025, the Maximum Drawdown (MDD) for BHP was 32.65%, between 28 December 2023 and 9 April 2025. The stock price has not yet recovered. <\/p>\n\n\n\n

\"Image
Example MDD and MDD-RT calculations for a stock that has not recovered from the maximum drawdown in the past 3 years.<\/figcaption><\/figure>\n\n\n\n

NOTE: As data is continually added, the 3 years window changes and the MDD (Maximum Drawdown) and MDD-RT (Maximum Drawdown Recovery Time) will change as well, to reflect the latest situation. <\/p>\n\n\n\n

See also<\/p>\n\n\n\n

Finding Maximum Drawdown for a Portfolio in Diversiview<\/a><\/p>\n\n\n\n

Login to your Diversiview account now<\/a> and check out the maximum drawdown and recovery times for your investments and your portfolio\/s.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

A maximum drawdown (MDD) measures the maximum fall in the value of the investment, as given by the difference between […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Calculate Maximum Drawdown for Securities with Diversiview","_seopress_titles_desc":"Learn how to calculate Maximum Drawdown (MDD) and recovery time for securities in Diversiview. A practical guide for investment risk analysis over 3 years.","_seopress_robots_index":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1,85],"tags":[],"_links":{"self":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/1478"}],"collection":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/comments?post=1478"}],"version-history":[{"count":10,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/1478\/revisions"}],"predecessor-version":[{"id":1699,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/1478\/revisions\/1699"}],"wp:attachment":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/media?parent=1478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/categories?post=1478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/tags?post=1478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}