Concept · Portfolio performance & risk decomposition
Portfolio variance decomposition
Splitting total portfolio variance into factor and residual shares, accounting for cross-position covariance. The portfolio-level analog of the single-stock decomposition.
In depth
The portfolio-level analog of the single-stock decomposition: aggregate position betas by weight, then split total portfolio variance into factor and residual shares — accounting for the covariance between positions.
Compute it with the API
POST /api/batch/analyze
# pip install riskmodels-py
client.batch_analyze(["NVDA","MSFT","AAPL"])In the methodology
Putting it together: the replication equation →Referenced by (0)
No working paper references this concept yet.