Portfolio Risk Score Calculator
TL;DR
- ▸Your risk score tells you how volatile your portfolio is likely to be.
- ▸A score above 70 means you could see drops of 30% or more in a bear market.
- ▸Diversification across asset classes is the best way to reduce risk without sacrificing returns.
- ▸Rebalance when your score drifts significantly from your target.
Risk is the silent partner in every investment. Most investors focus on returns, but your portfolio's risk profile determines how you will behave when markets drop — and whether you will stay invested or panic-sell at the worst moment.
This tool calculates a composite risk score from your asset allocation. Use it to understand your current exposure, compare it against your personal risk tolerance, and make informed decisions about rebalancing.
What Does the Risk Score Mean?
The score runs from 0 (very conservative, mostly cash and short-term bonds) to 100 (very aggressive, concentrated in small-cap and emerging market equities). A score around 40–50 corresponds to a classic balanced portfolio. Most long-term investors targeting growth sit between 55 and 75. The score is not a prediction — it is a relative measure of how much volatility your current allocation implies.
How Is the Risk Score Calculated?
Each asset class carries a base volatility weight derived from historical standard deviation data. Your portfolio score is the weighted average of these values based on your allocation percentages. Cash and short bonds anchor the low end; leveraged ETFs and crypto anchor the high end. The tool does not require login or connection to your broker — just enter the percentages manually.
Portfolio Risk Score
Asset-weighted risk assessment based on volatility
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Try DonkyCapital FreeWhen Should You Rebalance?
Rebalancing is triggered when your actual allocation drifts more than 5–10% from your target due to market movements. A rising equity market will increase your risk score over time even if you make no new purchases. Check your score quarterly and rebalance annually or when a major asset class moves more than 10 percentage points from its target weight.
Frequently Asked Questions
What risk score is right for me?
It depends on your time horizon and ability to tolerate drawdowns. If a 30% portfolio drop would cause you to sell, your score is too high. Most long-term investors (10+ year horizon) can sustain a score of 60–75.
Does a lower risk score mean lower returns?
Generally yes, over the long term. Lower volatility assets like bonds and cash produce lower expected returns. The trade-off is a smoother ride and less psychological pressure during downturns.
How often should I check my risk score?
Quarterly is sufficient for most investors. A sudden spike in the score usually means equities have outperformed bonds recently, shifting your allocation toward riskier assets.
Is cryptocurrency included?
Yes. Crypto is classified as the highest-risk asset class in this calculator due to its historical volatility, which is 5–10x higher than equities.
Can I use this tool for a pension or retirement account?
Absolutely. The risk score is useful for any investment account. Retirement accounts typically warrant a lower risk score as you approach the withdrawal phase.
Track Your Real Portfolio Risk in DonkyCapital
Connect your brokers and get a live risk score based on your actual holdings — no manual input required.
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