Ex-Post
What Is Ex-Post?
Ex-post is a different way to say actual returns and is Latin for "sometime later." The utilization of historical returns has generally been the most notable approach to forecast the likelihood of causing a loss on investment on some random day. Ex-post is something contrary to ex-ante, and that means "before the event."
Figuring out Ex-Post
Ex-post data is attained by companies to forecast future earnings. Ex-post data is used in studies, for example, value at risk (VaR), a likelihood study that approximates the maximum amount of loss an investment portfolio might cause on quickly. VaR is defined for a predefined investment portfolio, likelihood, and time horizon.
Ex-post yield varies from ex-ante yield since it addresses real values, basically what investors earn instead of estimated values. Investors base their choices on expected returns versus genuine returns, which is an important part of an investment's risk analysis. Ex-post is the current market price, minus the price the investor paid. It shows the performance of an asset; be that as it may, it excludes projections and probabilities.
Working out Ex-Post
Ex-post is calculated involving the beginning and ending asset values for a specific period, any growth or decline in the asset value, plus any earned income created by the asset during the period. Analysts utilize ex-post data on investment price variances, earnings, and different metrics to anticipate expected returns. It is estimated against the expected return to affirm the exactness of risk assessment methods.
Ex-post is best utilized for periods under a year and measures the yield earned for an investment year to date. For example, for a March 31 quarterly report, the genuine return measures how much an investor's portfolio has increased in percentage from Jan. 1 to March 31. On the off chance that the number is 5%, the portfolio acquired 5% since Jan. 1.
Ex-Post Analysis
Ex-post performance attribution analysis, or benchmark analysis, measures the performance of an investment portfolio based on the return of the portfolio and its correlation with various factors or benchmarks. Ex-post analysis is the traditional approach of performance analysis for long-just funds.
Ex-post performance analysis ordinarily centers on regression analysis. An analyst executes a regression of the portfolio's yields versus the returns of the market index to determine the amount of a portfolio's profit and loss may be the consequence of market exposure. The regression gives the portfolio's beta to the market index and the amount of alpha the fund was acquiring or losing comparable to the market index.
Ex-Post Forecasting
The formula for computing ex-post is (ending value - beginning value)/beginning value. The beginning value is the market value when an asset was purchased. The ending value is the current market value of an asset. Ex-post is a forecast prepared at a certain time that utilizes data accessible after that time. The forecasts are made when future perceptions are recognized during the forecasting period. It is utilized to notice known data to evaluate the forecasting model.
Features
- Ex-post is a word for genuine returns and deciphers from Latin as "sometime later."
- The ex-post value is gotten by thinking about the beginning and ending value of an asset, the growth and decline of the asset, and any earned income.
- Ex-post analysis takes a gander at financial outcomes after they have happened and uses them to foresee the probability of future returns.
- Ex-post remains rather than ex-ante, which utilizations assessments to check future performance. Ex-post is standard practice as it depends on proven results.
