Analyze your portfolio's concentration risk and see where you stand against diversification best practices.
Enter your portfolio details on the left to see your personalized risk analysis.
Concentration risk is what happens when a large portion of your portfolio rides on a single stock, sector, or region. The more concentrated your holdings, the more exposed you are to a single bad outcome.
A well-diversified portfolio can smooth out the impact of any one holding underperforming. The goal is not to eliminate risk entirely, but to make sure no single bet can sink the ship.
Reducing concentration does not require a complete overhaul. Trimming outsized positions over time, filling gaps in underrepresented areas, and reviewing sector exposure can move the needle meaningfully.
This calculator evaluates portfolio concentration risk by analyzing the distribution of holdings across individual positions, sectors, asset classes, and geographic regions. The risk score (0–100) uses weighted factors: largest single holding (max 25 points), top 5 individual holdings (max 18 points), sector concentration (max 18 points), geographic concentration (max 9 points), employer stock (max 24 points), and alternative assets (max 6 points). Risk thresholds are based on financial planning best practices: individual holdings should not exceed 10% of portfolio, top 5 holdings under 40%, sector exposure under 25%, and employer stock under 10%. This calculator is for educational purposes only and does not constitute personalized investment advice. Optimal portfolio allocation varies based on age, timeline, risk tolerance, tax situation, and financial goals. This tool should be used as a starting point for discussion with a qualified financial advisor.
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