Alert-Invest  ·  Portfolio Analysis Tool

Professional Portfolio Health Check for Retail Investors

What this does: Our Portfolio Analysis Tool calculates efficient frontier position, stock correlation matrix, Sharpe ratio and weight optimisation using Modern Portfolio Theory (Markowitz) — applied to real-time 10-K fundamental data. Evaluates Capital Allocation Efficiency, Debt-to-Equity thresholds, Shareholder Yield and Economic Moat quality across your entire holdings. The best free alternative to Bloomberg for retail portfolio diagnostics.

Most investors track prices. Few analyse correlation, weight distribution and risk-adjusted return. This tool shows where your portfolio sits on the efficient frontier — and how to improve it.

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What the analysis covers

The portfolio analysis tool looks at your holdings as a system — calculating correlations between positions, evaluating weight distribution, measuring volatility and Sharpe ratio, and showing where your portfolio sits relative to the efficient frontier (Markowitz Modern Portfolio Theory).

Key signals analysed: Capital Allocation Efficiency (ROIC vs cost of capital), Shareholder Yield (dividends + buybacks weighted by position), Free Cash Flow Yield per holding, Debt-to-Equity Thresholds flagging leverage risk, and Economic Moat diagnostic across all positions.

Core concepts: Modern Portfolio Theory applied

Efficient Frontier (Markowitz MPT)

The set of optimal portfolios offering the highest return for a given risk level. Shows whether your current allocation is efficient or if rebalancing improves risk-adjusted returns without adding risk.

Stock Correlation Matrix

How each pair of stocks moves relative to each other (-1 to +1). A well-diversified portfolio holds low or negatively correlated positions so losses in one are offset by gains in another. Reveals hidden concentration risk.

Sharpe Ratio

Risk-adjusted return: excess return earned per unit of volatility. Above 1 is good, above 2 is excellent. Lets you compare portfolios regardless of absolute return — a lower-return portfolio with higher Sharpe is more efficient.

Portfolio Weight Optimisation

Ideal allocation percentage per stock to maximise Sharpe ratio or minimise volatility, based on Modern Portfolio Theory and historical correlations between your holdings.

Portfolio Risk / Return metrics

A sample output from the portfolio analysis tool — every metric calculated automatically from your holdings.

Return & Risk
Expected Return (Ann.)26.60%
Volatility (Ann.)23.41%
Sharpe Ratio0.92
Sortino Ratio1.70
Maximum Drawdown-36.87%
Avg. Correlation0.37
Benchmark Comparison
Beta vs SPY1.22
Alpha vs SPY+11.96%
Beta vs QQQ0.97
Alpha vs QQQ+10.42%
Value at Risk
VaR 95% Daily (CF-adj.)2.32%
CVaR 95% Daily (CF-adj.)3.29%
VaR 95% Ann. (approx.×√T)36.72%
CVaR 95% Ann. (approx.×√T)52.10%
Distribution & Concentration
Skewness0.33
Excess Kurtosis5.66
HHI Concentration0.125
Avg. Correlation0.37
How to read these metrics: Sharpe > 1 = good risk-adjusted return. VaR 95% Daily 2.32% = on your worst 5% of days, you lose at least 2.32%. HHI 0.125 = well-diversified (max = 1). Positive Alpha vs SPY (+11.96%) = outperforming the market after adjusting for risk.

Efficient Frontier

Each dot is a simulated portfolio. The coloured curve is the efficient frontier — the upper boundary. ● Your portfolio sits deep inside the cloud (high risk, low return). ● Same-return optimal = same expected return as yours, but with significantly less risk by rebalancing along the frontier. ● Tangency portfolio = maximum Sharpe ratio point.

● Same-return optimal
Your portfolio earns 12% return at 27.5% volatility. The same 12% return is achievable on the efficient frontier at only ~12% volatility — by rebalancing into less correlated assets. You are taking 2× more risk than necessary for the same reward.
● Tangency portfolio (max Sharpe)
The mathematically optimal portfolio: maximises return per unit of risk (Sharpe ratio). At roughly the same volatility as your portfolio, it delivers significantly higher return. This is where you want to be after rebalancing.

Markowitz (1952) hyperbola — 500 simulated portfolios. Frontier coloured from minimum-variance (blue) to high-return (orange). Illustrative only.

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Frequently asked questions

What is the efficient frontier in portfolio analysis?
The efficient frontier (Markowitz Modern Portfolio Theory) is the set of optimal portfolios offering the highest expected return for a given risk level. It shows whether your current allocation is optimal or if rebalancing could improve risk-adjusted returns without adding risk.
What is stock correlation and why does it matter for diversification?
Correlation (-1 to +1) measures how two stocks move relative to each other. A well-diversified portfolio holds low or negatively correlated positions so losses in one are offset by gains in another. A correlation matrix reveals hidden concentration risk — positions that appear diversified but actually move together.
What is the Sharpe ratio and what is a good Sharpe ratio?
The Sharpe ratio = excess return ÷ annualised volatility. Above 1 is good, above 2 is excellent. It lets you compare portfolios regardless of absolute return — a portfolio with lower returns but a higher Sharpe ratio is more efficient on a risk-adjusted basis.
What is portfolio weight optimisation?
Weight optimisation determines the ideal allocation percentage per stock to maximise Sharpe ratio or minimise volatility for a target return, based on Modern Portfolio Theory and historical correlations between your holdings.
How is portfolio analysis different from a portfolio tracker?
A tracker shows real-time prices and P&L per stock. Analysis evaluates how holdings work together as a system — correlations, weights, Sharpe ratio, efficient frontier position, Capital Allocation Efficiency and Shareholder Yield across the full portfolio.
How do I avoid value traps in 2026?
Value traps are cheap stocks that stay cheap because the business is deteriorating. The portfolio analysis tool flags value traps by combining low valuation with declining ROIC, negative FCF growth and rising Debt-to-Equity — stocks that pass Graham’s price screen but fail Buffett’s quality screen.
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