Portfolio Analysis Calculator
Introduction & Importance
Portfolio analysis is crucial for understanding your investment performance and risk. Our calculator helps you analyze your portfolio’s asset allocation, risk, and return.
How to Use This Calculator
- Enter the current value of your stocks, bonds, and cash.
- Click ‘Calculate’.
- View your results and asset allocation chart.
Formula & Methodology
We calculate your portfolio’s total value, asset allocation, and risk using the following formulas:
Total Value: Stocks + Bonds + Cash
Asset Allocation: (Stocks / Total Value) * 100, (Bonds / Total Value) * 100, (Cash / Total Value) * 100
Risk: We use the standard deviation of expected returns to measure risk.
Real-World Examples
Example 1
A portfolio with $50,000 in stocks, $30,000 in bonds, and $20,000 in cash has an asset allocation of 45.45% stocks, 27.27% bonds, and 18.18% cash.
Example 2
A portfolio with $100,000 in stocks, $50,000 in bonds, and $50,000 in cash has an asset allocation of 50% stocks, 25% bonds, and 25% cash.
Example 3
A portfolio with $200,000 in stocks, $100,000 in bonds, and $100,000 in cash has an asset allocation of 40% stocks, 20% bonds, and 40% cash.
Data & Statistics
| Asset Class | Average Annual Return (2000-2020) | Standard Deviation (Risk) |
|---|---|---|
| Stocks | 10.2% | 19.3% |
| Bonds | 4.5% | 3.4% |
| Cash | 1.5% | 0.5% |
Expert Tips
- Diversify your portfolio to spread risk.
- Regularly review and rebalance your portfolio.
- Consider your risk tolerance and investment goals.
Interactive FAQ
What is asset allocation?
Asset allocation is the distribution of your investments across different asset classes, such as stocks, bonds, and cash.
Why is risk important?
Risk is important because it affects your potential returns. Higher risk usually means higher potential returns, but also higher potential losses.