What is the conditional value for the risk?

Conditional value-on risk (CVAR) is a mathematical equation that helps investors and businesses understand the maximum amount of risk and loss that may occur before a devastating loss. For a pattern of a conditional risk at risk, the maximum loss is defined as when the loss is higher than the value. Although the equation can be adjusted, it is normally 95 % for the reliability level and is generally very accurate. Unlike the equation of the risk in risk (VAR), this formula gives an accurate loss. It also shows the extent of loss, from minimum loss to maximum. For example, if an investor holds an investment of $ 1,000 in the US (USD), but he or she has already lost $ 1,000 or more, then there was a maximum loss and lost the entire investment. This usually continues to trend the trend, for further losses and conditional risk risk helps the investor or business to understand when to release investments or trades before causing this massive loss.

6 While the conditional risk pattern may have a lower level of reliability for a wider result, common trust is 95 percent. This tends to perform relatively accurate risk estimates. CVAR is usually the VAR PLUS average maximum loss that the company or investor can tolerate.

The VAR formula is similar to a conditional risk risk, but is usually not so accurate. This is because boiling states only the percentage of loss that the company can encounter before there is a large loss. With a CVAR, the formula reports the exact number before losing too high to maintain.

Cvar also gives the investor or business a number of losses. The lowest point of loss, known as the minimum loss, is when the investor or business is aimed at losing the entire value. At this point, it may be good to let go of an investment or trade before it gets worse. The maximum loss is at the highest point of loss and by then the investor or business has lost the money and usually loses time more over time.