Decoded Intelligence Signal
Downside Deviation
advanced
risk
Verified: May 27, 2026Lexicon Core Definition
The standard deviation of negative returns only; measures the volatility of losses while ignoring upside volatility; the denominator of the Sortino ratio.
Analysis Breakdown
The standard deviation of negative returns only; measures the volatility of losses while ignoring upside volatility; the denominator of the Sortino ratio. Full explanation coming soon when Journey 25 content is ingested.