Concept · Portfolio performance & risk decomposition
Risk contribution
Each position's (or factor's) share of *total portfolio risk*, accounting for correlation. Component contributions sum to the total — unlike standalone position risk.
In depth
Each position's marginal contribution to total portfolio risk, scaled by its weight and correlation with the rest of the book. Component contributions sum to total risk — unlike standalone position volatilities.
Compute it with the API
POST /api/batch/analyze
# pip install riskmodels-py
client.batch_analyze(portfolio)In the methodology
Putting it together: the replication equation →Referenced by (0)
No working paper references this concept yet.