Glossary
CAGRAnnualized growth rate of the portfolio over the full test period.
Sharpe RatioRisk-adjusted return measure comparing performance to volatility.
Maximum DrawdownLargest historical decline from an equity peak to a following trough.
HedgePortion of market exposure reduced through a short or protective position.
BenchmarkReference ETF or index used to compare Mosaic performance.
Portfolio RebalancingProcess of bringing the five selected stocks back toward equal weight.
Trend ScoreScore measuring the strength and quality of the price trend.
Stability ScoreScore measuring the consistency of the trend behavior.
Portfolio ScoreCombined portfolio-level reading used to summarize Mosaic quality.
Long ExposureTotal exposure invested in the five selected stock positions.
Net ExposureLong exposure after subtracting the effect of the dynamic hedge.
Pairwise CorrelationMeasure of how closely two portfolio holdings tend to move together. Lower pairwise correlation can improve diversification inside a concentrated portfolio.
Sector RotationMarket leadership shift from one sector to another, often visible when Mosaic replaces weaker exposures with stocks from sectors showing stronger trend quality.
Survivorship BiasDistortion that occurs when analysis only includes stocks that still exist today and ignores delisted, merged or failed companies from the original investable universe.
Weekly ChangesPortfolio changes between the current report and the previous weekly report.