by CI Staff
Our featured site for the month, Kalengo.com, not only provides users with portfolio tracking tools, but offers simple portfolio optimization capabilities as well. The site’s home page presents some news and optimization-education articles, but the true value of this site lies in the portfolio tracker.
In order to create a portfolio, you must first register with the site. Upon logging in, click “Create New Portfolio,” choose the portfolio name, and enter your holdings. The site also allows you to import a portfolio from a
The portfolio summary page shows the market value of all your portfolios. You can change the time period viewed by clicking on the various icons at the bottom, left-hand side of the chart. Market value, daily gain, total change, average return, risk and Sharpe Ratio are also provided, as well as a simple return/risk comparison chart.
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Select a portfolio and click “Portfolio Optimization” to navigate to Kalengo.com’s optimization tool. This page lists your holdings and their expected return and average risk. Using these numbers and the site-generated Efficient Frontier, Kalengo.com suggests an optimal portfolio (one that maximizes expected return for a given level of risk) using your current holdings, and compares it to your current portfolio. The program shows you which of your current holdings to increase and decrease to reach your optimal portfolio.
Kalengo.com also offers a Portfolio Style page that analyzes and breaks down your portfolio style. According to the website, this style analysis “identifies the combination of holdings across various asset classes that would most closely replicate the actual performance of your portfolio.” To put it another way, the style analyzer shows which combination of asset classes would most closely generate your portfolio’s risk and return.
The last two sections, Portfolio Risk and Asset Correlation, provide more useful portfolio analysis tools. The Portfolio Risk page compares your portfolio’s value at risk, return and market risk exposure to that of the S&P 500. The Asset Correlation page charts the correlation of each of your holdings compared to the Dow Jones Industrial Average, Nasdaq and S&P 500. The data are particularly useful when evaluating whether your portfolio is overly correlated with certain broad indexes.
Although the site is still in beta, the portfolio tools work well and we expect additional capabilities will be added. The site is completely free and worth trying out to gauge whether it fits your investing needs.