Portfolio Concentration and Heat Map Calculator
Group entered portfolio percentages by sector, country, and currency. Review classified coverage, concentration arithmetic, and a sector and country heat map without automatic weight adjustments.
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How it works
Enter a name, percentage allocation, sector, country or region, and currency code for each row. These are user supplied classifications. The tool does not fetch market values, verify labels, or look through fund holdings. Surrounding spaces are trimmed, while spelling and capitalization remain distinct.
The tool adds percentages as entered and reports the total. It groups rows with the same trimmed label for sectors, countries, and currencies. HHI uses the squared group weights in percentage points, not normalized fractions. HHI is available only when the entered total is within 0.01 percentage points of 100% and every positive holding has a label in that dimension.
The heat map combines the entered sector and country labels. It shows only rows with both labels. The coverage note reports the share of entered allocation represented by those pairs. Missing labels are not treated as zero exposure, and remaining weights are not silently redistributed.
Position flags require an entered total within 0.01 percentage points of 100% and use strict thresholds above 20%, 30%, and 50%. Group flags use strict thresholds above 40% and 50%. Color bands describe entered category percentages only. They do not estimate volatility, correlation, suitability, or overall risk.
Step by step
- Enter allocation percentages and the sector, country, and currency labels you want to group.
- Check the total and the classified coverage shown for each dimension.
- Review available HHI values, group flags, position flags, and heat map cells.
Worked example
Enter three rows: 50% in Technology, US, USD; 30% in Technology, UK, GBP; and 20% in Finance, US, USD. The supplied allocation totals 100%. These labels are example inputs, not verified classifications for specific securities.
The model groups Technology at 80% and Finance at 20%, giving sector HHI 6800. Country weights are 70% US and 30% UK, for HHI 5800. Currency weights are 70% USD and 30% GBP, also for HHI 5800. The heat map has cells of 50% Technology and US, 30% Technology and UK, and 20% Finance and US.
When to use this calculator
Use this tool to total user supplied sector, country, and currency labels and inspect how those categories are distributed. It can show the arithmetic effect of changing a percentage or classification.
Verify labels and fund composition separately when completeness matters. For questions about returns, correlation, price changes, or trade amounts, use data and methods designed for those questions.
Common interpretation mistakes
Do not assume that missing sector, country, or currency labels mean zero exposure. Check the coverage notes before interpreting a group or heat map.
Do not read HHI as a decimal fraction or a volatility score. It is the sum of squared group weights in percentage points and requires an allocation within 0.01 percentage points of 100%.
Calculation method
Total entered allocation = Σ holding percentages
Group weight = sum of holding percentages with the same trimmed label
HHI = Σ group weight²
Weights are percentage points. HHI is available only when total allocation is within 0.01 percentage points of 100% and every positive holding has a label for that dimension.
Temperature bands:
Below 10%: green
10% to under 20%: yellow
20% to under 30%: orange
30% or more: red
The tool does not normalize weights. Missing labels are excluded from that dimension's grouped exposures and counted as unclassified coverage. HHI is unavailable if the total differs from 100% by more than 0.01 percentage points or any positive weight lacks a label. Bands and flags are illustrative arithmetic thresholds, not risk ratings.
Assumptions and limits
The analysis uses only supplied percentages and text labels. It does not verify issuer or fund classifications, include underlying fund holdings, use prices or market values, estimate covariance or volatility, or represent all portfolio risks. A total more than 0.01 percentage points from 100% or missing labels can make HHI and position flags unavailable. Grouped exposures remain at their entered weights and are never rescaled. The colors and strict concentration flags are display rules, not validated risk grades or suitability advice. Values must be finite and each row allocation must be between 0% and 100%.
Key terms
- Supplied category
- A category label entered by the user. Matching labels are grouped after surrounding spaces are trimmed.
- Herfindahl Hirschman Index
- The sum of squared group weights, where weights are entered percentage points. It is available only for an allocation within 0.01 percentage points of 100% with labels on every positive row.
- Classified coverage
- The share of entered allocation that has a nonempty label for a given category dimension or sector and country pair.
Related tools
Use the Portfolio Rebalancer to model trades that change target weights. ETF Overlap Detector compares ticker lists, while this tool groups the labels you enter. Maximum Drawdown Calculator and Asset Correlation Matrix answer different questions about a return path and how assets move together.
These tools do not share an automatic portfolio feed. Enter matching holdings, dates, and assumptions yourself before comparing outputs.
FAQ
What information does this tool use?
Enter each holding's name, allocation percentage, sector, country or region, and currency code. The tool groups the labels exactly after trimming surrounding spaces. Different spelling or capitalization remains a separate category. It does not look through fund holdings or verify labels.
How is HHI calculated?
For a complete dimension, the tool adds the supplied percentage weights for each exact category label, then squares each group weight and adds the squares. The weights stay in percentage points, so a 70% and 30% split gives 70 squared plus 30 squared, or 5800. HHI is shown only when entered allocation is within 0.01 percentage points of 100% and every positive holding has a label for that dimension.
What do the heat map colors mean?
Each category gets a color band based on its entered percentage: below 10% is green, 10% to under 20% yellow, 20% to under 30% orange, and 30% or more red. These are illustrative display bands, not regulator thresholds, volatility measures, or portfolio ratings.
When does a concentration flag appear?
A position flag appears above 20% only when total entered allocation is within 0.01 percentage points of 100%. The flag level changes above 30% and above 50%. A sector, country, or currency group can also receive a concentration flag above its displayed threshold. These arithmetic markers do not say whether a holding is suitable or whether a portfolio is diversified in every sense.
Can I check a numerical example?
The example has Technology at 80% and Finance at 20%, so sector HHI is 6800. US is 70% and UK is 30%, so country HHI is 5800. USD is 70% and GBP is 30%, so currency HHI is 5800. The three heat map cells are 50%, 30%, and 20%. The calculation tests use the same rows.
Related tools
Portfolio Rebalancer models changes to target weights. ETF Overlap Detector compares ticker lists. Maximum Drawdown Calculator analyzes a supplied return path, while Asset Correlation Matrix compares return series. Each tool uses different inputs and answers a separate question.