Portfolio analysis guides
Each guide explains one topic from the start, with the formulas, real backtest data and the sources behind every claim.
- Read the guide
Portfolio analysis
Portfolio diversification
The formula behind it, five ways to measure it, how many holdings you need and what diversified portfolios did in practice.
- Read the guide
Risk
Risk-adjusted returns
Sharpe, Sortino, Calmar, Omega, Rachev, Treynor, M² and the CVaR family: formulas and when to use each.
- Read the guide
Hedging
How to hedge a portfolio
The common hedges (bonds, gold, cash, puts), why hedges fail, and how to measure one on your own portfolio with real data.
- Read the guide
Backtesting
How to backtest a portfolio
Data, rebalancing, costs, look-ahead bias and in-sample versus out-of-sample: an eight-step procedure.
- Read the guide
Stress testing
How to stress test a portfolio
Your own shocks, why summing betas double-counts correlated moves, and how to read the result.
- Read the guide
Risk
CVaR vs VaR
VaR is the loss cut-off for the worst 5% of days; CVaR is the average loss on those days. With a worked example.