Advinans has developed an efficiency rating to help you analyse how well-diversified your current investment fund portfolio is, in other words, your possible return given the risk you take. A low efficiency rating indicates that your risk is high relative to the return potential of your portfolio. A high rating indicates that your portfolio is well-diversified and that your risk is reasonable relative to your possible return. Advinans’ efficiency rating is based on an evenly distributed scale of 1-7, where 7 represents the highest efficiency rating.
In more detail, Advinans, through regression, measures the degree of systematic risk relative to the total risk in your investment fund portfolio. We compare historical data from the last 5 years for your portfolio with an equally weighted comparison portfolio to measure how much risk you currently take that could be diversified away. The comparison portfolio consists of a global share index in local currency and a global interest rate index hedged in SEK, pro-rata based on your portfolio composition.