Portfolio Risk Analysis

Our platform provides a comprehensive risk analysis of your cryptocurrency portfolio using multiple factors to help you make informed investment decisions.

🎯 Risk Score Components

1. Market Cap Exposure

We analyze your portfolio's distribution across different market cap segments:

• Top 3: Very Low Risk (15 points)

• Top 4-10: Low Risk (25 points)

• Top 11-50: Medium Risk (50 points)

• Below 50: High Risk (75 points)

2. Concentration Risk

• Top 3 tokens: Only penalized above 40% allocation

• Other tokens: Penalized above 20% allocation

3. Diversification Assessment

Calculated based on:

• Number of different assets in your portfolio

• Distribution across market cap categories

• Balance between different cryptocurrencies

Diversification Status Categories:

• Excellent Diversification (80-100): Well-balanced portfolio with optimal asset distribution

• Good Diversification (60-79): Solid mix of assets with room for minor improvements

• Moderate Diversification (40-59): Some concentration risks present

• Poor Diversification (0-39): High concentration risk, needs rebalancing

4. Volatility Assessment

Measures the price stability of your holdings on a 0-10 scale:

Volatility Status Categories:

• Very Low Volatility (0-2.5): Minimal price fluctuations

• Low Volatility (2.6-5.0): Moderate price stability

• Moderate Volatility (5.1-7.5): Notable price movements

• High Volatility (7.6-10): Significant price swings

📊 Risk Categories

Your overall portfolio risk is classified into:

• Very Low Risk (0-25)

• Low Risk (26-50)

• Moderate Risk (51-75)

• High Risk (76-100)

🔍 Risk Score Calculation

The final risk score (0-100) is calculated by combining:

• 30% weight: Diversification score

• 70% weight: Risk factors (market cap ranking, concentration, volatility)

Lower scores indicate a more conservative, potentially safer portfolio.

💡 Recommendations

Based on your portfolio analysis, you'll receive personalized recommendations for:

• Improving diversification

• Reducing concentration risks

• Balancing market cap exposure

• Managing volatility

⚠️ Important Notes

• Risk scores are indicators, not investment advice

• Market conditions can change rapidly

• Past performance doesn't guarantee future results

• Consider your personal risk tolerance when making investment decisions