Portfolio Risk

Build a mix of stocks, bonds, gold, bitcoin and cash and see how bumpy it has been on real history. Calculated in US dollars, month by month.

S&P 500 (the rest)
Max drawdown
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Loss in money
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Recovery
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Worst 12 months
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Yearly volatility
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Average per year
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Portfolio value Previous peak Drawdown

Your mix versus single assets

Diversification means the mix falls less than its riskiest parts. Compare the rows.

Average per yearMax drawdownWorst 12 mo.

How the assets relate to each other

Correlation shows how much assets move together: 1 means always together, 0 means unrelated, −1 means in opposite directions. The weaker the link, the better the assets smooth each other out.

What is a drawdown?

A drawdown is the fall in portfolio value from its previous peak. If your account was $10,000 and is now $7,000, the drawdown is 30%. Maximum drawdown is the deepest such fall over the whole period.

The math matters: to recover from a 50% drop you need a 100% gain. The deeper the drawdown, the longer the recovery.

What is volatility?

Volatility shows how much the value swings. Here it is the spread of monthly returns, scaled to a year. Low volatility means a calm line, high volatility means a roller coaster. Bitcoin's is several times higher than stocks'.

What is diversification?

Diversification means spreading money across assets that behave differently. When one falls, another may hold steady or rise, so the portfolio as a whole swings less. It does not remove risk entirely: in a severe crisis almost everything can fall at once.

Why does it matter?

Past results do not guarantee future returns. Educational purposes only, not financial advice.