Portfolio Temperature
Visualize portfolio concentration risk with a heat map of sector, country, and currency exposure.
Add holdings to see concentration analysis.
How It Works
Enter your portfolio holdings — each with a name, allocation percentage, sector, country, and currency. The tool aggregates your exposure across three dimensions: which sectors dominate your portfolio, which countries you're most exposed to, and how currency risk is distributed.
Each dimension receives a temperature rating (green to red) and an HHI concentration score. The heat map grid shows where your sector and country exposures overlap, revealing hidden risks like owning multiple tech stocks all domiciled in the same country. Concentration flags alert you when a single position, sector, or country exceeds prudent diversification thresholds.
FAQ
What is Portfolio Temperature?
Portfolio Temperature visualizes how concentrated your portfolio is across sectors, countries, and currencies. It aggregates your holdings into a heat map and flags risky concentration levels so you can rebalance before a sector or country downturn hits disproportionately hard.
What is the HHI score and how is it computed?
The Herfindahl-Hirschman Index (HHI) is a common measure of market concentration. For portfolios, HHI = Σ(weight²) for each dimension. A higher HHI means more concentration. For sectors, HHI > 2500 signals high concentration. For countries, HHI > 3600 is a red flag (most in one country).
How should I interpret the temperature colors?
Green (<10%) means well-diversified. Yellow (10–20%) means moderate exposure. Orange (20–30%) means elevated concentration — consider trimming. Red (>30%) means heavy concentration — single risk factor dominates.
What does it mean when a single position is flagged?
A single position exceeding 20% of your portfolio triggers an orange flag. This means a single stock or ETF can meaningfully move your total portfolio value. Consider whether that position's risk matches your overall strategy.
How do I read the heat map grid?
The heat map shows sector-country intersections. Each cell shows what percentage of your portfolio is in a given sector within a given country. Darker cells mean higher concentration at that intersection, helping you spot overlapping risks (e.g., US Tech dominating).
Related Tools
Pair this with the Portfolio Rebalancer to fix concentration issues. More tools coming: correlation matrix, risk parity allocator, Monte Carlo simulator.