Assess portfolio risk from asset mix, volatility and concentration in the largest holding.
Volatility comes from the asset-class mix, but real portfolio risk also depends on concentration, since a single large holding reintroduces specific risk that the asset-class view assumes away. A portfolio can look conservatively allocated and still be risky if one position dominates, which is why concentration is scored separately.
Portfolio Risk
Portfolio variance combines asset-class weights and volatilities; risk score also penalises concentration
Portfolio variance combines asset-class weights and volatilities; risk score also penalises concentration Volatility comes from the asset-class mix, but real portfolio risk also depends on concentration, since a single large holding reintroduces specific risk that the asset-class view assumes away.
A portfolio can look conservatively allocated and still be risky if one position dominates, which is why concentration is scored separately.
This calculator takes 5 inputs: Allocation to equities, Allocation to bonds, Largest single holding, Number of holdings, Assumed equity volatility. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.