Value at Risk (VaR) estimates the risk of an investment. VaR measures the potential loss that could happen in an investment portfolio over a period of time. Learn what Value at Risk (VaR) means in finance, including real-world examples, different types (historical, parametric, Monte Carlo), and the key formulas used to calculate VaR. From basics to breakthroughs, here's everything about Value at Risk in a nutshell. Protect your assets with these insights. Value-at-Risk (VaR) is a statistical measure that quantifies the potential maximum loss an investment portfolio could experience at a certain confidence level over a specified time horizon.
