4 min read

Advanced Portfolio Risk Calculator

Calculate portfolio volatility, beta, Sharpe ratio, maximum drawdown, and Value at Risk (VaR). Analyze sector allocation, correlation matrix, and run Monte Carlo simulations using real historical market data.

Portfolio Holdings

Ticker Symbol Allocation (%) Action
Risk Free Rate (%)
Total Allocation 0% Must equal 100%
Fetching historical market data & running simulations...

Methodology & Frequently Asked Questions

How are the risk metrics calculated?

This tool fetches 5 years of historical monthly price data for the entered tickers via public APIs. It calculates portfolio returns based on your allocations. Volatility is the annualized standard deviation of these returns. Beta is calculated against the S&P 500 (SPY). The Sharpe Ratio subtracts the risk-free rate from annualized returns and divides by volatility. Max Drawdown finds the peak-to-trough drop. VaR (Value at Risk) uses historical simulation to find the 5th percentile worst monthly return.

What does the Correlation Matrix show?

The correlation matrix displays how closely your selected stocks move together. A value of 1.0 means they move identically, -1.0 means they move inversely, and 0 means no correlation. Lower correlations between holdings generally lead to lower overall portfolio volatility (diversification benefit).

How does the Monte Carlo simulation work?

The Monte Carlo simulation generates 100 possible future portfolio paths over the next 10 years. It uses the historical mean return and historical volatility of your portfolio, assuming a log-normal distribution (Geometric Brownian Motion) to project future values.

Cite This Page

Westmount Fundamentals. "Advanced Portfolio Risk Calculator." westmountfundamentals.com/portfolio-risk-calculator, 2026.

Related Pages

Portfolio Allocation Calculator Stock Split Calculator & Guide: How Forward and Reverse Spli Real Return Calculator: Inflation-Adjusted Returns Dave Ramsey Investment Calculator: Will 12% Returns Make You