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Risk Management

Risk Metrics, Correlation & Factor Analysis

VaR, CVaR, Sharpe, correlation matrix, and Fama-French factor analysis

1 min read 199 words var sharpe correlation factors risk

Risk Metrics, Correlation & Factor Analysis

Risk Dashboard

Risk Dashboard and Risk Analytics provide:

  • VaR (Value at Risk) — Maximum loss at 95%/99% confidence
  • CVaR (Conditional VaR) — Average loss beyond VaR threshold
  • Beta — Sensitivity to market movements
  • Sharpe Ratio — Risk-adjusted return
  • Sortino Ratio — Downside-only risk-adjusted return
  • Max Drawdown — Largest peak-to-trough decline
  • Tracking Error — Volatility of excess returns vs benchmark

Correlation Analysis

Page Description
Correlation Matrix Full correlation heatmap of all holdings
Asset Correlation Asset-class level correlation
Concentration Risk Position size and sector concentration
Liquidity Analysis Liquidity risk assessment

Factor Analysis

Factor Analysis and Factors show exposure to academic risk factors:

  • Market (Beta) — Overall market sensitivity
  • Size (SMB) — Small vs large cap tilt
  • Value (HML) — Value vs growth tilt
  • Profitability (RMW) — High vs low profitability
  • Investment (CMA) — Conservative vs aggressive investment
  • Momentum — Trend-following exposure

The universal auto-classifier handles all asset types: equities, ETFs, mutual funds, bond funds, CEFs, and preferred stocks.

Risk Parity

Risk Parity allocates capital so each holding contributes equal risk to the portfolio.

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