Skip to main content

All-Weather Risk Assessment

In short

All-weather portfolio risk analysis across macro regimes and stress scenarios

A risk assessment framework inspired by the institutional all-weather approach. It analyses your portfolio's exposure to different economic environments — growth, inflation, deflation, recession — and identifies hidden concentrations and tail risks.

This framework stress-tests a portfolio the way a macro risk desk would: across four growth/inflation regimes (rising growth with rising inflation, rising growth with falling inflation, stagflation, and deflation), then through sector, geographic, factor, and single-name concentration checks and a correlation analysis identifying which holdings move together. It models drawdowns under historical-style shocks — a 2008-style crash, a 2020-style shock, 1970s-style stagflation — flags which positions would be hardest to exit under stress, and closes with which categories of hedging tools (index options, defensive sectors, commodities, duration) investors typically weigh against the vulnerabilities found, and where the portfolio's diversification looks thinnest.

Related concepts

  • Sharpe Ratio — Sharpe ratio measures how much return you get for every unit of risk you take. A Sharpe of 1.0 means for every 1% of risk, you earn 1% return above the risk-free rate. Higher is better.
  • Beta — Beta of 1.0 means the stock moves in line with the market. Beta of 1.5 means if the market rises 10%, this stock typically rises 15% — more volatile. Beta of 0.5 means less volatile than the market.
  • Maximum Drawdown — If your portfolio hit $10,000 then fell to $6,000 before recovering, the max drawdown is 40%. It measures the worst experience a real investor would have endured.