Portfolio risk: how concentration and diversification are scored
A hyper-active trader holding 90% in one memecoin and a slow accumulator split across ten established assets have very different portfolio risk — regardless of their trading frequency.
The composition family
Portfolio risk reads directly from the holdings metrics:
- Concentration — share of the largest position. Concentration above ~50% is a structural risk multiplier.
- Asset diversity — the number and independence of holdings. Ten correlated alts are less diverse than they look.
- Stablecoin ratio — how much is parked in stable assets. High ratio means dry powder and defensiveness.
- Native vs token split — the base-chain reserve vs speculative exposure.
- Position-size variance — are positions balanced, or one giant bet beside a stack of dust?
Why stablecoin ratio matters
The stablecoin ratio is a behavioral tell: a high ratio during risk-off periods suggests a defensive, patient wallet; a high ratio during a melt-up can mean sidelined capital about to deploy. Combined with holding behavior, it sketches the wallet's position on the market cycle.
Scoring structure
These metrics feed SIGBOT's portfolio risk score — part of the overall risk decomposition — with a visible breakdown. You see exactly what raised it: the 92% single-position concentration, the 3% stablecoin buffer, the one-asset portfolio.
Not advice, a measurement
Portfolio risk scoring describes exposure. It is a tool for counterparty diligence, personal review, and comparing strategies — not investment advice.