Context

How professionals use this

  • Concentration is a feature, not a bug. The problem is when one event can break your plan.
  • Overlap matters. Different tickers can still be the same trade.
  • Correlation spikes in stress. Use the slider as a stress test assumption.
  • This is a screen. It does not replace full portfolio analysis.
  • Use it before adding size. Not after the drawdown starts.
  • Keep it simple. The goal is to spot obvious fragility.
Calculator

Inputs

Diversification score
--
Single-event exposure
--%
Higher means one event can dominate outcomes.
Suggested action
--
A conservative nudge, not an order.
What the score means
  • 80 to 100: diversified enough for most regimes.
  • 55 to 79: fine in calm tape, can bite during stress.
  • Below 55: concentration is driving risk. Reduce overlap or size.
Educational use only. This tool is a rough screen and does not constitute financial advice. It does not replace a full portfolio analysis or professional risk assessment.