Portfolio Diversification Analyzer

WHAT IT DOES

Portfolio Diversification Analyzer helps you understand the diversification of your crypto portfolio. You provide your holdings (asset, amount, and category), and the tool calculates the total portfolio value, asset distribution, category breakdown, and diversification score. It identifies concentration risks, shows the percentage allocation of each asset and category, and provides recommendations for improving diversification. This is essential for investors who want to reduce risk by spreading investments across different assets and sectors. It reads the current network chain ID from your wallet provider for context, but all calculations are performed locally.

HOW TO USE

Connect your wallet using the "Connect" button (required for network context). Select the target network (Ethereum Mainnet, Sepolia, Polygon, BSC, Arbitrum, Optimism, and testnets are supported). Enter your portfolio holdings with asset symbol, amount, and category (Large Cap, Mid Cap, Small Cap, DeFi, NFT/Gaming, Stablecoin, Layer 1, Layer 2). Enter current market prices for each asset. Click "Analyze diversification" — the tool will calculate portfolio value, distribution, diversification score, and display recommendations. The entire operation is read-only — no transactions are signed or sent.

TECHNICAL MECHANISM

The tool calculates total portfolio value by multiplying each asset's amount by its current price. It then computes the percentage allocation of each asset and category. The diversification score is calculated based on four factors: number of assets (up to 20 points), number of categories (up to 20 points), top asset concentration (up to 30 points), and top category concentration (up to 30 points). Higher scores indicate better diversification. The tool uses ethers.js v5.7.2 for network context but performs all calculations locally. Results are displayed with color-coded indicators and actionable recommendations.

WHAT IT CANNOT SEE

The tool cannot guarantee that diversification recommendations will result in optimal risk-adjusted returns. It cannot account for correlation between assets or market conditions. It is limited by RPC provider availability and price feed freshness. It cannot read external portfolio data or automatically categorize assets without manual classification. It cannot account for fees, slippage, or liquidity when making recommendations.

PLEASE NOTE

This tool is for educational and analytical purposes. Diversification does not guarantee profits or protect against losses. The tool does not persist any data; all state is lost on page reload. EVM chains only.