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.