how to use the risk vs. return scatterplot chart
compare funds and portfolios in a single view




Overview
This Risk vs. Return Scatterplots appear at the bottom of each VizMetrics comparison page.  Each portfolio is plotted according to its total return and standard deviation. Each portfolio is shown as a separate number (e.g., 21) on the scatterplot. A scatterplot may also be referred to as an X-Y graph, scatter chart, scattergram, or scatter diagram. 

How to make comparisons
The Risk vs. Return scatterplot chart allows you to compare all portfolios in one view using total return and standard deviation. Each portfolio on the report is given a number that appears in the left column of the page. This number is plotted on the scatterplot.  The vertical axis (Y-axis) is the total return for a specified period (1 3 or 5 years) and the horizontal access (X-axis) is the standard deviation of the individual portfolios over the same period (1, 3, or 5 years).

Numbering and color coding
Each number on the chart corresponds to a portfolio in the list on the page.
You can read a plotted number (e.g. 46) on the Risk vs. Return Scatterplot and then refer to item 46 in the list of portfolios to get the full set of metrics for portfolio #46
       
If several portfolios have similar values, their numbers may appear on top of each other and the numbers may be obscured on the scatterplot. If this occurs, you can zoom in with your PDF viewer. If you are interested in a particular portfolio in the list, you can find its location on the scatterplot by finding the total return and standard deviation for that portfolio, then refer to the scatterplot at that location.

Color coding
Each number on the scatterplot is color-coded to match its category in the list of portfolios.
Each category has a color and portfolios in that color appear in adjacent rows on the list, with the number of each portfolio using that background color.

How to make comparisons    
All of the portfolios are plotted when data are available. Limited historical data may prevent the portfolio from being plotted. 
The top left corner is the most desirable, since this represents lowest risk with highest return.
The bottom right corner is the least desirable, since this represents highest risk with lowest return.
For a given level of risk (on the horizontal X-axis), you can scan up and down to see the range of returns from different portfolios for that risk level.
For a given level of return (on the vertical Y-axis), you can scan side-to-side to see the range of risk from different portfolios for that level of return.