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
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