Entropic value at risk

Entropic value at risk (EVaR) is a way of calculating the amount of risk that an investment could be exposed to. It looks at how much money could be lost from an investment, in the worst possible case. For example, if you invested $100 in stocks, EVaR will calculate how much money you could potentially lose if the stocks go down by a particular amount. EVaR is helpful because it helps you decide if the money you would potentially lose is an amount that you are comfortable with.