Estimate portfolio volatility using historical stock data and correlation analysis
| Asset | Weight | Historical Return (%) |
|---|
Portfolio volatility is a measure of the dispersion of returns of a portfolio over time. It is a key metric used by investors to assess the risk associated with their investments. The volatility of a portfolio is influenced by the volatilities of the individual assets within the portfolio, as well as the correlations between these assets.
The Stock Portfolio Volatility Estimator allows users to input the historical returns of their portfolio's constituent assets, along with their respective weights in the portfolio. It then calculates the overall volatility of the portfolio, taking into account the correlations between the assets.
To use this tool effectively, users should have access to historical return data for their portfolio's assets. This data can be obtained from various financial databases or websites. The tool provides an intuitive interface for inputting this data and calculating the portfolio's volatility.
| Stock | Weight | Volatility |
|---|---|---|
| AAPL | 0.3 | 0.15 |
| GOOGL | 0.2 | 0.12 |
| MSFT | 0.5 | 0.10 |