I’m working on a protype for a new tool called Moontower Portfolio. (It needs a better name, I know)
You input your assets. Everything. Primary home, angel investment, VTI. Whatever.
You decide if you want to proxy a holding by something that liquid. For example, you can proxy your bond cusip with TLT.
Then we can use our volatility and market data to estimate the risk and performance of the portion of your portfolio deemed “measurable”.
Some portion of your portfolio has unmeasurable risk. That angel investment or loan to a friend. But just getting a handle on your measurable risk with current data is enlightening and satisfying (possibly addicting).
I made a screenshare that walks you through it…but even better — it’s really an educational video that gets into understanding portfolio volatility.
You’ll learn how to go from the formula to actually computing it step by step for a portfolio of N assets.
In the process, you’ll find the entire idea of implied index correlation demystified.
[If you prefer a blog version of that, you’re covered. See Dispersion Trading For The Uninitiated]
Let’s just get to it. I hope you dig it and learn a lot!
I had to record this 4x so if you like moontower in video format feel free to tell me but I can’t say I’ll make a habit of it.
(if the embed isn’t working here’s the link to the Youtube video directly)
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