Tag
#portfolio-analytics
5 articles
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Concentration Risk in Portfolios: Measuring It by Position, Sector and Factor
Concentration risk is the exposure that comes from too much of a portfolio depending on one thing. It is measured at position, sector and factor level, and the three disagree.
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Correlation Matrix in Portfolios: How to Read One, and Why Correlations Rise in a Crisis
A correlation matrix shows how closely each pair of holdings moves together. Reading one well means watching the pairs, the period, and how correlations behave under stress.
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Portfolio Dividend Yield: How It Is Computed and What It Does Not Promise
Portfolio dividend yield is the income a portfolio's holdings paid over the past year, divided by portfolio value. It is a backward-looking ratio, not a promised rate.
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Portfolio P/E and P/B Ratio: How Portfolio Valuation Is Aggregated
Portfolio P/E and P/B summarise how expensive a whole portfolio looks. The aggregation method, weighted average versus harmonic versus aggregate, changes the answer materially.
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What Is R-Squared in Investing? How Much of a Portfolio the Benchmark Explains
R-squared measures what share of a portfolio's return movement is explained by its benchmark. It runs from zero to one and decides whether alpha and beta mean anything.
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