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lpm

calculate a lower partial moment for a time series


Description

Caclulate a Lower Partial Moment around the mean or a specified threshold.

Usage

lpm(
  R,
  n = 2,
  threshold = 0,
  about_mean = FALSE,
  SE = FALSE,
  SE.control = NULL,
  ...
)

Arguments

R

xts data

n

the n-th moment to return

threshold

threshold can be the mean or any point as desired

about_mean

TRUE/FALSE calculate LPM about the mean under the threshold or use the threshold to calculate the LPM around (if FALSE)

SE

TRUE/FALSE whether to ouput the standard errors of the estimates of the risk measures, default FALSE.

SE.control

Control parameters for the computation of standard errors. Should be done using the RPESE.control function.

...

Additional parameters.

Details

Lower partial moments capture negative deviation from a reference point. That reference point may be the mean, or some specified threshold that has other meaning for the investor.

Author(s)

Kyle Balkissoon kylebalkisoon@gmail.com

References

Huffman S.P. & Moll C.R., "The impact of Asymmetry on Expected Stock Returns: An Investigation of Alternative Risk Measures", Algorithmic Finance 1, 2011 p. 79-93


PerformanceAnalytics

Econometric Tools for Performance and Risk Analysis

v2.0.4
GPL-2 | GPL-3
Authors
Brian G. Peterson [cre, aut, cph], Peter Carl [aut, cph], Kris Boudt [ctb, cph], Ross Bennett [ctb], Joshua Ulrich [ctb], Eric Zivot [ctb], Dries Cornilly [ctb], Eric Hung [ctb], Matthieu Lestel [ctb], Kyle Balkissoon [ctb], Diethelm Wuertz [ctb], Anthony Alexander Christidis [ctb], R. Douglas Martin [ctb], Zeheng 'Zenith' Zhou [ctb], Justin M. Shea [ctb]
Initial release
2020-02-05

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