Apply it to your data 12

Which of the assets the largest contributor to the portfolio volatility?

# Load packages

# Core
library(tidyverse)
library(tidyquant)

Goal

Examine how each asset contributes to portfolio standard deviation. This is to ensure that our risk is not concentrated in any one asset.

1 Import stock prices

Choose your stocks from 2012-12-31 to present.

2 Convert prices to returns (monthly)

3 Calculate Component Contribution to Portfolio Volatility

6 Plot: Colum Chart of Component Contribution and Weight

Which of the assets in your portfolio the largest contributor to the portfolio volatility? Do you think your portfolio risk is concentrated in any one asset?