[Newbie Question] Stocks Cafe Risk Manager


A newbie here. I will like to find out more on understanding the risk manager in stock cafe and how I can use it to balance my portfolio.



What Risk Manager does is basically, assuming that you buy X amount of Y stock, what would be your portfolio’s new beta, new value at risk and new expected shortfall be. They are basically different ways to measure and manage “risk”.

As for how to use it, it is up to individual and their investing strategy. For me, I use it to see if buying or selling a stock would increase or decrease my portfolio risk. Note that I do sometime still go ahead with the transaction even if the portfolio risk is increased.

I supposed you have read this article but adding it anyway.