Credit: WUSA Therefore, the absolute risk reduction is 10/100 minus 1/100 which equals 9/100 or a 9 percent reduction. If you compare those two numbers, that's a nine percent difference.

Example One way to look at absolute return versus relative return is in the context of a market cycle, such as bull versus bear. In a bull market, 2% would be seen as a horrible return.

Relative performance is the comparison of the returns of your portfolio to that of some benchmark index. Absolute performance is the return of the portfolio itself on a year-over-year basis.

An Easy Way to Explain the Difference Between a Relative & an Absolute Formula in Excel. Using formulas in Excel can be less than intuitive for some people.

In this period of high asset prices, raging inflation and macro uncertainty, investors should be paying more attention to the risks to absolute returns than to relative performance vs. arbitrary ...

Pfizer and Moderna using relative risk reduction in order to claim “95% effective” instead of using absolute risk reduction where they’d only be able to claim “0.7%” and “0.6%” effectiveness, ...