Diversification Analysis
HHI calculations, diversification scoring, and correlation analysis
Feature #30
Diversification Score
68.5/100
Fair diversification
Potential Score
85.2/100
+16.7 with improvements
Concentration Risk
Medium
HHI: 3,247 (target: <2,500)
Diversification Metrics
Comprehensive diversification analysis
Portfolio HHI
Herfindahl-Hirschman Index measures concentration (lower is better)
FAIR
Current
3,247
Optimal
2,500
Progress to Optimal130%
Effective N
Number of "effective" positions (higher indicates better diversification)
FAIR
Current
3.08
Optimal
4
Progress to Optimal77%
Diversification Ratio
Portfolio volatility vs weighted average volatility (higher is better)
GOOD
Current
0.68
Optimal
0.85
Progress to Optimal80%
Correlation Score
Average pairwise correlation (lower indicates better diversification)
FAIR
Current
0.595
Optimal
0.4
Progress to Optimal149%