Portfolio Diversification Index

The Portfolio Diversification Index feature provides users with an analysis of the diversity of their portfolio across different asset types, sectors, and risk profiles. This tool calculates and visualizes how well the portfolio is diversified, helping users avoid overconcentration in any one asset or sector and reducing exposure to potential risks.

Core Capabilities:

• Diversification Scoring: Evaluate the level of diversification in the portfolio with a score that reflects the spread of assets across different categories and risk levels.

• Asset Classification: Categorize assets by type (e.g., stocks, bonds, cryptocurrencies, commodities) and sector to assess the portfolio’s breadth.

• Concentration Risk Identification: Highlight areas where the portfolio may be overly concentrated in a particular asset or sector, indicating potential risks.

Key Benefits:

• Optimized Risk Management: Ensure that your portfolio is not overexposed to any single asset or market sector, reducing potential risks from market fluctuations.

• Balanced Portfolio Strategy: Achieve a well-rounded investment approach by improving diversification and balancing your portfolio across different asset classes.

• Informed Asset Allocation: Make smarter asset allocation decisions by visualizing where adjustments may be needed to improve diversification and reduce risk.

With Portfolio Diversification Index, users can easily track and manage the diversification of their portfolio, optimizing it for risk mitigation and improved long-term performance.