DESK INSTRUMENTS
Allocation Architect
Most portfolios are constructed by dividing capital and hoping for diversification. This instrument computes what the allocation actually exposes you to — portfolio volatility derived from a full correlation matrix, parametric Value at Risk, and the share of total risk each holding genuinely contributes.
Mandate parameters
Indicative allocation
72% AT RISK · 28% RESERVENote the divergence between capital weight and risk weight. A ten percent allocation to the highest-volatility asset can contribute a materially greater share of total portfolio risk — the distinction that separates deliberate allocation from arithmetic division.
PORTFOLIO VOLATILITY (ANN.)
36.8%
DAILY VOLATILITY
1.92%
1-DAY VALUE AT RISK (95%)
€792
On roughly one trading day in twenty, losses may exceed this figure.
Correlation matrix
Diversification is a function of correlation, not of instrument count. Holding three assets that move together is a single position expressed three times.
| Asset | BTC | ETH | SOL | USDC |
|---|---|---|---|---|
| BTC | 1.00 | 0.82 | 0.71 | 0.00 |
| ETH | 0.82 | 1.00 | 0.78 | 0.00 |
| SOL | 0.71 | 0.78 | 1.00 | 0.00 |
| USDC | 0.00 | 0.00 | 0.00 | 1.00 |
Observe that the three risk assets correlate above 0.70. In a broad market decline they should be expected to decline in concert; the stablecoin reserve is the only genuine diversifier in this construction.
Volatility and correlation inputs are long-run approximations provided for illustration and are not forecasts. This tool performs arithmetic on figures you supply; it does not constitute financial advice, a recommendation, or an offer to transact. Cryptocurrency carries substantial risk of loss, including total loss of capital.