CryptoToolbox

Crypto Portfolio Risk Score

Analyze your crypto portfolio risk across 5 key factors: volatility, concentration, correlation, liquidity, and time horizon. Get a 0–100 risk score with actionable improvement suggestions.

Portfolio Risk Score

Total: 0.0%

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Use the Portfolio Rebalancing Calculator to adjust your portfolio based on these risk insights.

Understanding Your Risk Score

Your portfolio risk score is calculated using five key factors, each contributing a weighted portion to your overall score. The score ranges from 0 (lowest risk) to 100 (highest risk), with four risk grades: Low (0–25), Moderate (26–50), High (51–75), and Very High (76–100).

A moderate score (around 40–55) is typical for a balanced crypto portfolio. Even conservative crypto portfolios will have higher risk scores than traditional stock portfolios, because cryptocurrency as an asset class is inherently more volatile. The goal is not necessarily to minimize the score, but to understand the risks you are taking and ensure they align with your investment goals and risk tolerance.

The Five Risk Factors

  • Volatility (30% weight) — Measures how much your portfolio's assets fluctuate in price. Calculated from the annualized standard deviation of daily returns over the past 90 days.
  • Concentration (25% weight) — Evaluates how well your portfolio is diversified using the Herfindahl-Hirschman Index (HHI). A portfolio concentrated in one or two assets scores higher.
  • Correlation (20% weight) — Analyzes how closely your assets move together. Highly correlated assets provide less protection during downturns.
  • Liquidity (15% weight) — Assesses how easily your assets can be traded. Large-cap coins like BTC and ETH have high liquidity, while smaller altcoins may be harder to exit quickly.
  • Time Horizon (10% weight) — Considers your investment timeline. Short-term investing with volatile assets carries significantly more risk than long-term holding.

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Frequently Asked Questions

A crypto portfolio risk score is a single number (0–100) that measures how risky your cryptocurrency portfolio is based on multiple factors including volatility, concentration, correlation between assets, and liquidity. A lower score indicates a safer, more diversified portfolio, while a higher score suggests greater exposure to potential losses. The score helps you understand whether your portfolio is well-balanced or overly concentrated in high-risk assets.
Not financial advice. Risk scores are for informational and educational purposes only. Past volatility and correlations may not predict future behavior. Always do your own research before making investment decisions.