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<p>Equity drawdown in investing refers to the percentage decrease in the value of an investment from its peak value to its lowest point during a period of decline. It essentially measures the potential loss an investor might experience, providing insights into an asset's historical volatility and risk. <br></p>
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<p id="isPasted">Equity drawdown is the decline in an investment's value from its peak to a subsequent low point, measured as a percentage to represent risk and potential losses. It is a key metric for assessing volatility, and while it represents a temporary drop, understanding the size and duration of drawdowns is crucial for risk management. It is different from a simple loss, which is calculated from the purchase price to the exit price. </p><p><br></p>
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