Simulatore

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COMPLEXITY-BASED PORTFOLIO DIVERSIFICATION - Non-commercial version.

The tool measures the complexity of a portfolio. Complexity has direct impact on the degree of diversification.
High portfolio complexity means low diversification.
The tool ranks portfolio components based on how they impact its complexity (in %).
Stocks at the top of the bar chart are key contributors to portfolio complexity and therefore reduce its diversification.
Stocks at the top of the bar chart are potentially highly coupled. Removing them may reduce risk.

Complexity is a positive number and has no units.
Complexity also provides a new and modern measure of volatility by taking into account:

1. Nonlinear aspects of correlation and coupling between stocks, using a new generalized correlation
2. Portfolio structure

High portfolio complexity means:
1. High volatility
2. Highly coupled portfolio.

Select 2 to 20 stocks. No weights are assigned to the stocks. Only one stock per ticker.

Identify stocks that make your portfolio highly complex.

All analyses are based on the last 100 days of stock closing prices.

For more information, contact us.