Riskvalue
Posted: Fri Feb 08, 2013 8:17 am
I have made a small PP-like portfolio for my wife at a different broker
Allocation: Stocks 40%, Bonds 30 %, Gold 20 %, Cash 10 %.
This broker provides a riskvalue of the portfolio using:
To calculate the risk value of the portfolio xxBank uses the following system. The performance
of your current portfolio (no changes) is calculated at the rate of 128 days (6 months) back, then back 127 days, 126 days, 125 and so on until the present day. about this value development is the volatility calculated, where recent fluctuations more weight than movements in long time ago.
The riskvalue has 6 classes: from 0 - 11( savings) up till > 250, very speculate.
The national stock index has a riskvalue about 100.
The portfolio of my wife has a calculated value of 20 which in their terms compares to the risk of national Bonds, which is quite remarkable and substantiated the theory of the stability of the PP portfolio.
Allocation: Stocks 40%, Bonds 30 %, Gold 20 %, Cash 10 %.
This broker provides a riskvalue of the portfolio using:
To calculate the risk value of the portfolio xxBank uses the following system. The performance
of your current portfolio (no changes) is calculated at the rate of 128 days (6 months) back, then back 127 days, 126 days, 125 and so on until the present day. about this value development is the volatility calculated, where recent fluctuations more weight than movements in long time ago.
The riskvalue has 6 classes: from 0 - 11( savings) up till > 250, very speculate.
The national stock index has a riskvalue about 100.
The portfolio of my wife has a calculated value of 20 which in their terms compares to the risk of national Bonds, which is quite remarkable and substantiated the theory of the stability of the PP portfolio.