Portfolio Risk
Description
Portfolio Risk represents the combined risk of each individual investment
within a portfolio. Standard deviation is the most common proxy for portfolio
risk. A portfolio’s historical standard deviation can be calculated as the
square root of the variance of returns.
This Excel model is for educational purposes only. Strictly Confidential
All content is Copyright material of 365 Financial Analyst ®
© 2023, 365 Financial Analyst ®
Portfolio Risk (Apple and CMS Energy)
Holding Holding
Stock Price Stock Price Period Period Portfolio
Date
(AAPL) (CMS) Return Return Return
(AAPL) (CMS)
7/1/2018 46.223221 45.437225
8/1/2018 55.293457 46.283188 19.62% 1.86% 10.7% =$E$31*E5+$E$32*F5
9/1/2018 55.026672 46.404709 -0.48% 0.26% -0.1%
10/1/2018 53.349594 46.897167 -3.05% 1.06% -1.0%
11/1/2018 43.530891 49.331047 -18.40% 5.19% -6.6%
12/1/2018 38.585068 47.36269 -11.36% -3.99% -7.7%
1/1/2019 40.713184 49.737976 5.52% 5.02% 5.3%
2/1/2019 42.354534 52.283134 4.03% 5.12% 4.6%
3/1/2019 46.663288 53.37878 10.17% 2.10% 6.1%
4/1/2019 49.296772 53.388386 5.64% 0.02% 2.8%
5/1/2019 43.007851 53.926598 -12.76% 1.01% -5.9%
6/1/2019 48.808441 56.046986 13.49% 3.93% 8.7%
7/1/2019 52.53714 56.347015 7.64% 0.54% 4.1%
8/1/2019 51.47673 61.021626 -2.02% 8.30% 3.1%
9/1/2019 55.442406 62.302532 7.70% 2.10% 4.9%
10/1/2019 61.579021 62.2733 11.07% -0.05% 5.5%
11/1/2019 66.156113 60.080906 7.43% -3.52% 2.0%
12/1/2019 72.9095 61.590279 10.21% 2.51% 6.4%
1/1/2020 76.847343 67.147522 5.40% 9.02% 7.2%
2/1/2020 67.871758 59.218407 -11.68% -11.81% -11.7%
3/1/2020 63.28677 57.929661 -6.76% -2.18% -4.5%
4/1/2020 73.119873 56.292839 15.54% -2.83% 6.4%
5/1/2020 79.127747 57.762035 8.22% 2.61% 5.4%
6/1/2020 91.035858 58.037716 15.05% 0.48% 7.8%
Input
Weight (AAPL) 50%
Weight (CMS) 50%
Output
Variance 1.03% 0.19% 0.35%
Standard Deviation 10.13% 4.38% 5.89%
=STDEV.S(E5:E27) =STDEV.S(F5:F27) =STDEV.S(G5:G27)
E5+$E$32*F5