What is the single highest-impact improvement I can make?
A question about what could be done next. The answer describes what is there and what would change; what to do about it is a decision only the person holding the portfolio can make.
Worked through on a sample portfolio. The figures below are that portfolio’s, not yours.
I can’t give recommendations, but I can show the single biggest source of portfolio impact so you can act on it yourself.
Table — top contributors to portfolio volatility (most impact first)
| Asset | Weight (%) | Volatility p.a. (%) | Contribution to volatility (%) |
|---|---|---|---|
| Apple Inc. | 18,41% | 22,99 | 20,9 |
| Microsoft Corp. | 11,62% | 30,50 | 15,98 |
| Deutsche Lufthansa AG | 8,41% | 30,67 | 14,48 |
| iShares Core MSCI World UCITS ETF | 16,55% | 9,00 | 10,69 |
| Bitcoin | 5,11% | 35,92 | 10,4 |
What this means
- The single largest contributor to your portfolio volatility is Apple Inc. by contribution share (20,9% of portfolio volatility).
- The next biggest contributors are Microsoft Corp. and Deutsche Lufthansa AG (15,98% and 14,48% respectively).
- Together the top three holdings drive a substantial share of volatility; the top five listed above explain most of the portfolio’s volatility profile.
If you want, I can prepare a follow-up view that quantifies the effect of a specific change (assumptions and results shown together) so you can compare scenarios.
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Related questions
See this for your own portfolio
The assistant answers the same question about your own holdings, with your figures and today’s prices. Import from your broker, or open the demo portfolio and ask it there.