{"id":226,"date":"2024-06-25T00:11:38","date_gmt":"2024-06-25T00:11:38","guid":{"rendered":"https:\/\/diversiview.online\/help\/?p=226"},"modified":"2025-04-15T03:43:53","modified_gmt":"2025-04-15T03:43:53","slug":"portfolio-risk","status":"publish","type":"post","link":"https:\/\/diversiview.online\/help\/portfolio-risk\/","title":{"rendered":"Portfolio Risk (Volatility)"},"content":{"rendered":"\n<p><strong>Portfolio Risk<\/strong>, also known as Portfolio Volatility, shows the potential fluctuation of the expected returns.<\/p>\n\n\n\n<p>Portfolio risk is calculated as the standard deviation of the portfolio, which considers the risk of individual investments, their weights in your portfolio and the granular correlations between pairs individual investments. For each individual investment the volatility (risk of loss) is the standard deviation of the daily returns from the geometric avg return over the past 3 years, annualised.<\/p>\n\n\n\n<p>A high portfolio volatility means that the returns are more volatile and unstable so the risk of loss is higher.<\/p>\n\n\n\n<p>See the formula <a href=\"https:\/\/www.wallstreetmojo.com\/portfolio-standard-deviation\/\">Portfolio Standard Deviation<\/a> and check out our explanatory videos.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-14-1024x576.png\" alt=\"Diversiview Portfolio Analysis Report Risk (Volatility).\" class=\"wp-image-1244\" style=\"width:700px\" srcset=\"https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-14-1024x576.png 1024w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-14-300x169.png 300w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-14-768x432.png 768w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-14-1536x864.png 1536w, https:\/\/diversiview.online\/help\/wp-content\/uploads\/2025\/02\/Diversiview-Help-Getting-Started-14-2048x1151.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>You can find the Portfolio Alpha value on your dashboard or the Diversiview analysis page, under the \u2018Performance &amp; Benchmark\u2019 section. The table shows two values:<\/p>\n\n\n\n<ul>\n<li>The left value indicates the portfolio alpha of the <strong>current<\/strong> asset allocation.<\/li>\n\n\n\n<li>The right value indicates the portfolio alpha of the <strong>optimal <\/strong>asset allocation.<\/li>\n<\/ul>\n\n\n\n<p>*For the purpose of portfolio risk (volatility) calculations, Diversiview uses the index that you select from your profile settings. To learn how to select your preferred market benchmark, <a href=\"https:\/\/diversiview.online\/help\/selecting-your-preferred-market-benchmark\/\">click here<\/a>.<\/p>\n\n\n\n<p>For a personalised portfolio, it is recommended that you match the portfolio risk with your own risk tolerance.<\/p>\n\n\n\n<p><strong>Do you know your risk tolerance level?\u00a0<\/strong><a href=\"https:\/\/diversiview.online\/risk-tolerance-scale\" target=\"_blank\" rel=\"noreferrer noopener\">Use our research-based questionnaire<\/a>\u00a0to calculate it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Portfolio Risk, also known as Portfolio Volatility, shows the potential fluctuation of the expected returns. Portfolio risk is calculated as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Portfolio Risk (Volatility) | Diversiview Help","_seopress_titles_desc":"Learn about portfolio risk (volatility) and understand how it can affect your portfolio's performance with Diversiview.","_seopress_robots_index":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[95,5,50,33],"tags":[],"_links":{"self":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/226"}],"collection":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/comments?post=226"}],"version-history":[{"count":8,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/226\/revisions"}],"predecessor-version":[{"id":1451,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/posts\/226\/revisions\/1451"}],"wp:attachment":[{"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/media?parent=226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/categories?post=226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diversiview.online\/help\/wp-json\/wp\/v2\/tags?post=226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}