Tag Archives: Returns

Is my portfolio working or not?

Portfolio main screen in T-Advisor

Investors organise efficiently their investments in portfolios. That’s the rule, but the question is: how to follow up my portfolio? Can I preview somehow troubles in my investments? Which ratios should I take into account to set and allocate my assets?

There are some indicators that give us some clues whether we are right or wrong and the changes we have to decide:

  • Returns: of course, this is the first one. As investor, you do not have to be anxious about the short term, because volatility is our current rule. You should use a tool that provides you different terms in order to compare the evolution. However, you have to think about changes if the returns are negative in the middle term.
  • Comparison with other references: it is a good idea to compare the evolution of your portfolio with the benchmarks (an index or a smart benchmark). This comparison will help you evaluate a proportion of the profits or losses that you get and diminish or underline the importance of the result. For instance, if your portfolio losses 3% and your benchmark losses 5%, it is not so bad. You are better than the index, although you should consider change your strategy, it the negative trend intensifies.
  • Diversification: get charts about the proportion of the assets in your portfolio related to regions, currencies and asset category. A diversified allocation will help you avoid several risks.
  • Risk: this is actually the second most important indicator after returns. Analyse the volatility, the value at risk (VaR) and the risk contribution of your positions. A segmented analysis will focus better your next decisions. Should I keep, sell or buy? Another quite important figure is the Sharpe ratio to understand how interesting is assuming risks in order to obtain certain returns.
  • Trend: you should as investor use tools to get the portfolio trend, if bullish or bearish.
  • Portfolio and investor profile consistency: is your portfolio consistent with your investment profile, your risk tolerance and your expected returns? That is another question that you have to ask yourself.

You need tools to make a full analysis and obtain a whole view over your portfolio and take the best decisions to improve your results. It is important that you get unbiased indicators, watch risk and returns, understand everything and take rational decisions, never guided by a short term situation. At the end, it is not only about profits, but above all capital preservation. The T-Advisor platform offers these figures so that everyone can set and allocate assets their own portfolios in the most efficient way.

Comparing assets in T-Advisor with our tools

When an investor is looking for interesting assets for his or her portfolio, he or she usually looks into reports to find objective figures: performance, volatility, risk… This task is necessary to take a decision, as everyone has to analyze deeply where to invest the money. But other way to decide an investment is the comparison.

Think about that: you have heard that any sector is living a momentum and you begin to read reports of some companies of this sector. You would like to have a tool to see at a glance the evolution of the performance, instead of building charts by yourself: the T-Advisor tool to compare is your solution.

These are the steps: select the assets and include them in your watchlist. Just click on the star to put on your list. Then choose all the assets that you want to compare. Once you have chosen the assets to compare, click on the button “Comparison”. Watchlist in T-Advisor Let’s look an example with British banks. These are the results: Charts with the comparation in T-Advisor This chart shows the evolution of the returns of the selected assets for different timeframes: Comparation of risk and returns in T-Advisor This other chart compares the position of each asset in the relationship performance-risk.

Both views provide valuable information, as it helps obtain a global view for your interests. You have also more information if you scroll down: Comparative data in T-Advisor You can also use the tool to compare the assets in your portfolio. Select your portfolio and click on the button “Watchlist”. Choose the assets to compare and click on the button “Compare”.

You will obtain the same charts as above. For instance, let’s look the Germany portfolio in T-Advisor: List of assets in a portfolio in T-Advisor Comparative chart in T-Advisor T-Advisor has developed its tools to be a useful help for investors. We are aware that information is important, but in a world with such volume of figures and data, information has to be organized so that everyone can understand it to take their own investment decisions. That is why our developments are focused in collecting relevant data to provide them in understandable and easy ways for our users.