> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincept.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Downside-risk optimisation

> Portfolios that control losses instead of variance, from historical return scenarios: mean-semivariance (downside deviation below a threshold, Sortino ratio), mean-CVaR (expected shortfall at a confidence level) and mean-CDaR (conditional drawdown at risk, with the drawdown curve); minimum risk, target risk, target return and downside quadratic utility.

Toolset `pfopt_downside`: 3 tools.

| Tool | What it does | Notes |
| - | - | - |
| `pfopt_semivariance` | Mean-semivariance optimal weights from a price (or returns) history: only returns below semi\_benchmark count as risk. | |
| `pfopt_cvar` | Mean-CVaR optimal weights from historical return scenarios: CVaR (expected shortfall) is the average loss in the worst (1 - beta) share of periods, per period (daily for daily data). | |
| `pfopt_cdar` | Mean-CDaR optimal weights from a price (or returns) history: CDaR is the average of the worst (1 - beta) share of drawdowns of the cumulative (summed) portfolio return. | |

Inputs, limits and outputs are described in [Fincept Portfolio Optimizer](/guides/fincept-portfolio-optimizer). Full schemas: `fincept_describe_tool`.


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