Portfolio Analysis

Portfolio analysis is the process of assessing a collection of investments to evaluate their performance and risks. It helps investors understand how different assets, like stocks, bonds, or real estate, work together to achieve overall financial goals. By analyzing returns, risks, and correlations among investments, individuals can make informed decisions about buying, selling, or holding assets. The aim is to optimize returns while managing risk, ensuring that the investment mix aligns with the investor's financial objectives and risk tolerance. Essentially, it’s about balancing potential rewards with acceptable levels of risk.