9 Tornado Charts Visualizing Risk Concentration in Seconds скачать в хорошем качестве

9 Tornado Charts Visualizing Risk Concentration in Seconds

I'm Fernando Hernandez. Today I'll show you how to identify your portfolio's biggest risk drivers in under 30 seconds using tornado charts. After running marginal risk analysis, click "Generate marginal tornado charts." The system creates multiple visualizations showing risk impact by asset, sector, geography, asset types and other categorizations. Here's how to read them: each horizontal bar represents one position's risk contribution. Longer bars mean bigger impact. The assets automatically rank from highest impact at the bottom to lowest at the top. Look at the bottom three bars on your asset-level chart right now. These represent your highest risk concentrations. Are they consistent with your investment thesis? If not, you have a problem. Bars extending left show risk increases when you change positions. Bars extending right - if any - show potential risk decreases. Now examine your sector chart. If you see one or two sectors with very long bars, you have dangerous sector concentration that diversification isn't solving. The geographic chart reveals currency and regional risks. The market cap chart highlights size factor exposures. Here's the practical application: set position limits based on tornado chart rankings, not just position size. Asset A might be 10% of your portfolio but contribute 20% of risk. Generate these charts monthly and compare them over time. If you see bars lengthening, risk concentration is increasing even if position sizes haven't changed. Tornado charts transform pages of marginal risk statistics into instant visual insights. Show them to your investment committee - they'll understand the risk concentrations immediately.