Portfolio Diversity

[mkitzmann]

We could us a a simple indicator to show how diverse your portfolio is. Range between 0 and 100%.

Calculation could be based on asset classes (stocks, bonds, cash etc.), sectors, regions, correlation and market cap represented in your portfolio.

https://www.investopedia.com/terms/d/diversification.asp
https://quant.stackexchange.com/questions/10128/how-to-score-a-portfolios-diversity-based-on-security-returns
https://en.wikipedia.org/wiki/Modern_portfolio_theory#Diversification
https://seekingalpha.com/article/1312601-how-to-assess-real-world-portfolio-diversification

Example:

[sadortun]

Good idea, I think it's also closely related to the concept of Risk Exposure where we should have some red flag when a user have too much assets in one sector.

[sadortun]

I would also see a page where you have a list of "health checks" that guide the user with a list of his good/risky behaviours.

• 34% of your portfolio is in high volatile stocks
• You only invested in NASDAQ, you may want to also trade on other exchanges
• .....

[mkitzmann]

Love the idea of Health Checks! It could make the whole topic of risk assesment more approachable and also lead to clear actions the user should take to avoid these risks. I will open up another discussion concerning this.