Most investors know what they hope to earn. Very few know what they could lose, and why. InvestmentLens breaks risk into human concepts, not just numbers on a page — with a score you can interpret and act on.
Each dimension is calculated separately, then rolled into a composite score. Click through to any dimension to see what it means, why it matters, and what typically moves it up or down.
How much of your money depends on your top 3 or top 5 holdings. A book that looks diversified can hide a single dominant bet.
Whether one theme drives most of your returns. Tech-heavy portfolios felt very smart in 2020 and very concentrated in 2022.
How a strong or weak home currency changes your reality. A US investor in European equities holds two bets, not one.
Which positions get punished when rates move and why. Long-duration assets are not just bonds.
How wildly the book tends to swing day to day. A smoother ride is often worth more than headline returns.
Where your capital physically lives. Politically stable, moderately stable, or actively at risk.
What a 10%, 20%, or 40% market drop typically looks like historically — and how similar portfolios fared.
Owning ten things that all move together is not diversification. The AI flags correlated clusters.
Some positions are painless to exit; others aren't. The AI flags illiquid corners of your book.
score = 50
+ max(0, concentration - 25) # HHI penalty
- min(20, positions × 2) # breadth bonus
- min(15, sectors × 3) # sector bonus
+ (has_crypto ? 8 : 0) # volatility flag
clamp(1, 100)
Concentration is a Herfindahl-style score: the sum of squared sector shares. A book with one 100% sector = 100 concentration. Ten equal sectors = 10.
The number is intentionally coarse. 25 is a broadly diversified index-fund book. 50 is a moderately tilted portfolio. 75+ is a concentrated bet — sometimes deliberate, sometimes accidental. The point is not to hit a target number; the point is to know where you stand.
Every input to the formula is inspectable in your dashboard. Nothing is hidden. Nothing is proprietary.
Your portfolio is broadly diversified across many positions, sectors, and asset types. Expect drawdowns to roughly track the market, not amplify it.
A moderately tilted portfolio. Concentrated enough to outperform when the tilt works, exposed enough to underperform when it doesn't.
A materially concentrated book. Individual positions or sectors will dominate performance. Make sure the concentration is deliberate.
A high-conviction, high-consequence portfolio. If it works, it works spectacularly. If it doesn't, drawdowns will feel personal. The AI will flag this loudly.