Methodology
Portfolio Health methodology
Portfolio Health is a rule-based, on-device heuristic — not generative AI and not personalized financial advice.
Portfolio Health gives a 0–100 score and short signals about portfolio structure based on the values you enter. It helps you notice concentration, diversification and cash-reserve patterns — it does not tell you what to buy or sell.
Not financial advice. This is an indicative self-assessment tool only. It does not consider your personal goals, income, liabilities, tax situation or risk tolerance.
How it works (high level)
- Calculated locally in the app from your stored platform entries
- Uses deterministic rules — not generative AI or large language models
- Based on platform-level totals you update manually
- Recomputed when your portfolio data changes
Signal categories
The overall score combines weighted sub-scores (maximum 100 points) across these areas:
| Area | What it measures | Max points |
|---|---|---|
| Concentration | Largest single position as % of total wealth | 20 |
| Positions | Number of tracked holdings / platforms | 15 |
| Sectors | Breadth across mapped sector buckets (equities, crypto, cash, etc.) | 20 |
| Asset types | Variety of non-cash asset types | 25 |
| Return | ROI heuristic from invested vs current values you entered | 10 |
| Cash reserve | Cash allocation % relative to simple healthy ranges | 10 |
Status bands
- 85–100 — Excellent
- 70–84 — Very good
- 50–69 — Needs improvement
- Below 50 — High risk (structural signals, not a market forecast)
Additional displayed metrics
- Diversification % — derived from position weight distribution (Herfindahl-style normalization)
- Risk level — weighted by asset-type risk factors (e.g. crypto and P2P weigh higher than cash or bonds)
- Concentration level — low / medium / high based on largest position %
Known limits
- Only as accurate as the manual values you enter
- Does not model individual securities, tax lots, or liabilities unless you represent them as entries
- FX conversion for display uses approximate rates — not for accounting
- Sector mapping uses simplified buckets from asset types — not fundamental security analysis
- Suggestions in “Learn more” are templated guidance, not a personalized plan
Changes
Rule thresholds may change as the product evolves. Material changes will be reflected in app release notes and this page’s “Last updated” date.
