Watch the demo: https://youtu.be/6PYu219ayKc
Performance Optimization is performed in the Performance Engine (PE) tab. The tab shows how your portfolio behaves mathematically. It takes the weights you entered in Upload Holdings (UH) and evaluates your portfolio’s return, risk, and efficiency using Modern Portfolio Theory (MPT).
The PE tab does not pick stocks, forecast markets, or change your holdings. Its purpose is simple:
Show how your portfolio performs today, and how it would perform if the weights were optimized.
Modern Portfolio Theory Diagnostics
The PE tab displays the core diagnostics used in professional portfolio analysis:
- Expected Return (ExpR)
- Risk (Volatility)
- Sharpe Ratio
- Alpha
- Beta
- Correlation to Benchmark
- Actual Return (ActR)
- Actual Return vs Benchmark
These measures describe how your portfolio behaves:
- Expected Return — the return your portfolio is designed to generate
- Risk — how much the portfolio moves
- Sharpe Ratio — how efficiently the portfolio converts risk into return
- Alpha — value added beyond the benchmark
- Beta — sensitivity to market movements
- Correlation — how closely the portfolio tracks against the benchmark
- Actual Return — what the portfolio actually did
- Actual vs Benchmark — how it performed relative to the market
Together, these metrics provide a complete picture of your portfolio’s performance.
How the Solver Works
The solver is the mathematical engine behind ClearLedger. Its job is straightforward:
Find the most efficient mix of the holdings you already own.
It does not pick new stocks, predict winners, or override your investment strategy. It adjusts weights only, using Modern Portfolio Theory.