Tips for better portfolio decisions
Run these analytics every quarter and before major rebalances to keep risk and return aligned with your goals.
- High returns without context can hide dangerous drawdowns—pair return with volatility.
- Sharpe ratio above 1.0 means your excess return beats the risk-free rate per unit of risk.
- Beta greater than 1.0 indicates amplified market swings—check if that aligns with your tolerance.
- Positive alpha means you outperformed a passive benchmark after adjusting for risk.
- Monitor max drawdown to understand real-world loss potential and recovery timelines.
- Compare against multiple benchmarks (broad market, 60/40, bonds) to isolate skill from asset mix.