Portfolio risk
Moula computes risk metrics from your portfolio's daily history. You'll find them on the Risk page and as scorecards on the Overview page, both in the Portfolio section.
On the Overview page
- Sharpe ratio: your return per unit of risk
- Beta: how closely your portfolio moves with the market (SPY)
- Max drawdown: your worst peak-to-trough decline, with deposits and withdrawals stripped out
- Short put exposure: for option sellers, the cash needed if your short puts were assigned
Several scorecards have two versions you can switch between by clicking them: one based on your account's actual history, and an "Open" version based on the positions you hold today.
On the Risk page
- Value at Risk and Expected Shortfall: how much a bad day could cost you, at 95% and 99% confidence, read from your own worst daily returns
- a histogram of your daily returns
- diversification: how many equal-sized positions your portfolio behaves like, and your largest single weight
- average correlation, and a heatmap showing which of your largest holdings move together
- open beta, for the positions you hold today
Switch between Current holdings and Account history to see tail risk for the positions you hold today or for your account's actual past.
How much history is needed
Each metric appears once there's enough daily history behind it: about 3 months for beta, drawdown, and correlation, about 6 months for the Sharpe ratio and 95% Value at Risk, and about a year for 99% Value at Risk. Until then, Moula tells you the metric isn't available yet.
Options
Open option positions are valued with a pricing model rather than live option quotes, so risk figures that include them are estimates.
These are statistics about your own portfolio, not investment advice.