Investment Risk Assessment Calculator: Measure & Manage
Our Risk Assessment Calculator quantifies portfolio volatility, reward-risk ratios, and downside protection.
Key Risk Metrics
| Metric | Formula | Interpretation |
|---|---|---|
| Volatility | Std Dev of returns | Higher = riskier |
| Sharpe Ratio | (Return - Rf)/Vol | >1 good |
| Beta | Cov/Var_market | 1 = market |
| VaR | Z * Vol | Max loss at confidence |
Example: 50/50 Stock/Bond, Rf 3%, Market 8%/15%
- Portfolio Vol: 11.3%
- Sharpe: 0.62
- Beta: 0.85
- 95% VaR: 18.6%
How It's Calculated
Weighted averages for return/beta; variance formula with correlations for vol; Z-scores for VaR.
Pro Tips
- Low correlation reduces vol
- Sharpe >1 target
- Rebalance annually
- Link to Sharpe
Limitations
- Historical assumptions
- Normal distribution
- No tail risks
Conclusion
Balance risk-return with our Risk Assessment Calculator. Explore Finance tools.