Which holdings contribute most to portfolio volatility?
A risk question asks how much of a portfolio depends on one thing going right — a single position, a sector, a country. Concentration is read as a share of the total, which is what the figures below show.
Worked through on a sample portfolio. The figures below are that portfolio’s, not yours.
Here are the holdings that contribute most to your portfolio volatility, sorted by their share of portfolio volatility contribution:
| Asset | Volatility contribution (%) |
|---|---|
| Apple Inc. | 20,9 |
| Microsoft Corp. | 15,98 |
| Deutsche Lufthansa AG | 14,48 |
| iShares Core MSCI World UCITS ETF | 10,69 |
| Bitcoin | 10,4 |
| Ethereum | 10,24 |
| MasterCard Inc. | 5,4 |
| SPDR MSCI USA Small Cap Value Weighted UCITS ETF | 3,96 |
| Gold | 3,19 |
| Xtrackers MSCI USA UCITS ETF 1C | 2,48 |
| iShares Core MSCI EM IMI UCITS ETF USD (Acc) | 2,27 |
What this table shows: the first column names the holding and the second column gives its percent contribution to portfolio volatility. The top three contributors are Apple Inc., Microsoft Corp. and Deutsche Lufthansa AG.
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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.