How It Works
From a list of tickers and weights to a Hidden Concentration Score -- in seconds.
How It Works
Three steps to clarity
Add your portfolio.
Link your broker, upload a CSV, or paste your tickers — takes 30 seconds.
We look beneath the labels.
ETFs and funds get decomposed into the actual underlying holdings.
See your hidden concentration.
Get your Hidden Concentration Score, the factors driving it, and a plain-English finding.
Methodology
The Hidden Concentration Score is a weighted composite of three metrics, adjusted for the current market regime.
Correlation Concentration
We compute pairwise Pearson correlations on 90-day rolling log returns across your holdings, then average the absolute values. Low averages mean your positions move independently. High averages mean that when the market moves, your portfolio moves as one -- even if the ticker symbols look diversified on paper. Returns are winsorized at the 1st/99th percentile to prevent single-day shocks from dominating the matrix.
Factor Overlap
Every asset has exposure to the same underlying drivers -- US equity beta, long-duration rates, the dollar, crypto, commodities. We regress your portfolio against those factors, measure how much variance the top two explain, and penalize portfolios where two factors dominate. A 60/40 stock/bond mix can show low correlation concentration but still concentrate on the same macro factor (rate regime). This metric catches that.
Macro tilt
Correlations in a calm market aren't the correlations you'll face in a stressed one. We compare your portfolio's current average correlation against historical stress-window correlations (COVID Crash, 2022 Rate Shock). The larger the gap between calm-regime and stress-regime correlation, the more sensitive your diversification is to shifts in the broader market environment. This is the metric that separates portfolios that look diversified today from portfolios that will stay diversified tomorrow.
Regime adjustment
The base score is shifted up or down by as much as ±10 based on a Systemic Fragility Index derived from recent SPY realized volatility. In high-volatility regimes, the same portfolio structure carries more tail risk — the multiplier reflects that.