Portfolio Risk & Return

Time Horizon

How long money is meant to stay invested before it is needed. It shapes almost every number in a portfolio analysis: Meridian uses it both as the window of history it measures and as the length of the Monte Carlo simulation, so changing it can change the expected return, the volatility and the probability of profit. The longer the horizon, the more time a portfolio has to recover from a drawdown, which is why long-horizon money can, in principle, ride out more short-term volatility. A short horizon leaves less room for a bad year to be made up.

Educational information, not investment advice. See it applied across the screener →