THE RESEARCH LAB
Look beneath the holding count.
Inspect the weights of an illustrative portfolio and see how a single-position shock affects the whole.
ILLUSTRATIVE HOLDINGS
Use up to five holdings or exposure groups. Weights must total 100%.
Total weight: 100.0%
Where the weight sits
ONE SIMPLIFIED STRESS SCENARIO
If the largest position fell 30% and everything else stayed flat, this mix would decline 12.0%.
Effective holding count = 1 ÷ the sum of squared fractional weights. It describes weight concentration only. It does not account for correlations, leverage, fund overlap, or individual asset risk. A higher count does not establish a suitable allocation. The stress scenario is not a forecast.
A BETTER READING ROUTINE
A good read is worth passing on.
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