Capital versus risk
A stock can be a big part of the portfolio and still cause little of the bumpiness. A wild stock can be a small part and cause most of it. This mix acts like 1.6 names, not 6.
AAPL MSFT NVDA AMZN GOOGL META · 5 years · 1,254 days · Oct 26, 2021 – Oct 26, 2026
- AAPL24.9% capital · 9.8% of risk
- MSFT0.0% capital · 0.0% of risk
- NVDA73.8% capital · 89.7% of risk
- AMZN0.0% capital · 0.0% of risk
- GOOGL1.3% capital · 0.5% of risk
- META0.0% capital · 0.0% of risk
Top bar is capital. Bottom bar is share of variance.