Portfolio Concentration & Herfindahl Index Calculator

Measure portfolio concentration using the Herfindahl-Hirschman Index (HHI), effective N (diversification ratio), and sector/country concentration metrics. Calculate the diversification ratio vs. an equal-weight benchmark.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Measure portfolio concentration using the Herfindahl-Hirschman Index (HHI), effective N (diversification ratio), and sector/country concentration metrics. Calculate the diversification ratio vs. an equal-weight benchmark

Each component has a specific meaning:

  • Herfindahl-Hirschman Index — The herfindahl-hirschman index recorded for the scenario being assessed.
  • Effective N — The effective n recorded for the scenario being assessed.
  • Sector/country concentration metrics — The sector/country concentration metrics recorded for the scenario being assessed.

Note: Interpret the portfolio concentration result against the thresholds and context described above.

How to Use

Enter the Herfindahl-Hirschman Index, effective N, sector/country concentration metrics for the scenario you are assessing. Measure portfolio concentration using the Herfindahl-Hirschman Index (HHI), effective N (diversification ratio), and sector/country concentration metrics. Calculate the diversification ratio vs. an equal-weight benchmark. Use the portfolio concentration result to inform your calculation.

Frequently Asked Questions