Portfolio Risk Analyzer - Evaluate Investment Risk

Understanding Portfolio Risk Analysis

Portfolio risk analysis is essential for making informed investment decisions. Our Portfolio Risk Calculator helps you understand your investment portfolio's risk profile, diversification quality, and potential performance during market downturns.

Key Risk Metrics Explained

• Portfolio Volatility: Measures how much your portfolio value fluctuates over time
• Sharpe Ratio: Indicates risk-adjusted returns - higher is better
• Maximum Drawdown: Shows the worst peak-to-trough decline you might experience
• Value at Risk (VaR): Estimates potential losses in normal market conditions
• Diversification Score: Rates how well your investments are spread across different asset classes

Why Diversification Matters

Diversification is the practice of spreading investments across various asset classes to reduce risk. A well-diversified portfolio typically includes a mix of equity, debt, commodities, and alternative investments. This helps protect your wealth during market volatility while maintaining growth potential.