Evaluate the impact of a trade on portfolio risk, yield and fundamentals before hitting the Buy button. Backtest portfolios to measure the effectiveness of different strategies.
See the impact of a trade on portfolio characteristics.
When making a trade or new investment in the stock market, do you have a good picture of what the portfolio will look like afterwards? What will the new portfolio split look like? What about portfolio risk? Weighted average yield? Use the portfolio simulator you easily see the impact of the trade on:
- Weight: Largest portfolio position
- Weight: Largest sector exposure
- Portfolio risk
- Weighted average yield
- Weighted average return on equity
- Weighted average growth rate
Get the historic performance of a portfolio strategy.
Backtesting is a helpful strategy for those investors who want to take it a step further after the portfolio asset allocation has been developed. This helps you measure the effectiveness of particular strategies retrospectively and perform optimization if needed.
Questions and answers.
What is the investment portfolio simulator?
The investment portfolio visualizer is an easy-to-use tool that enables you to simulate the impact of a contemplated transaction on your portfolio. This is standard practice in the institutional world. When making a new investment in the stock market, institutional investors first perform portfolio analysis and analyze how this new investment will fit into the portfolio, using advanced tools and software. How will the investment portfolio split be affected? Will the maximum exposure limits be respected? How does the investment’s risk profile compare to that of the portfolio? Is the growth and profitability profile in line with the portfolio’s? These are all important questions for proper strategic portfolio management. If institutional investors do this, so should individual investors.
However, up until now individual investors lacked the portfolio optimization tool set available to institutional investors. This is no longer true. The Ziggma stock market website offers a comprehensive portfolio visualizer software enabling you to evaluate and calibrate a transaction’s impact on portfolio split, risk and various portfolio-level key performance indicators. It also helps you plan an effective strategy for the future.
What are the advantages of the portfolio simulator?
The investment portfolio simulator is a set of easy-to-use tools that enables you to perform portfolio analysis and simulate the impact of a contemplated transaction on your portfolio and to ultimately achieve your financial goals. The advantage of simulating the impact of a trade before actually carrying it out is substantial. We do not know of any broker that will provide you with a portfolio simulation tool to use before executing a trade. So you will not know what your portfolio will look like until you have executed the trade. And even then, do you really get a good picture of your portfolio from your broker?
The main advantage of the investment portfolio simulator lies in portfolio management coherence. It will help you make investment decisions that are coherent with your investment philosophy. It provides you with a last check whether the new investment fits into your portfolio. Imagine, for example, that you already own a lot of tech stocks. Then you discover yet another great tech stock in Ziggma’s best free stock screener software or as you compare stocks. The stock portfolio simulator will then enable you to evaluate whether you have room for another tech stock or whether adding it will make your portfolio too overweight in tech stocks.
Beyond this reality check, the stock portfolio simulator lets you calibrate the investment in relation to your portfolio. Add or reduce a few shares, then simulate until you are completely satisfied with your portfolio.
How to use the portfolio simulator?
Using Ziggma’s investment portfolio simulator is very easy. You can navigate to the tool in various of ways. One way is by selecting it directly in the menu bar. It will open the stock or ETF portfolio simulator (it works for both stocks and ETFs). Then enter the security you have in mind for adding to your portfolio. The price field will then show the most recently available price, which you can edit if you wish. The second entry you have to make is for the number of shares you would like to add. Then hit Simulate.
You can also get to the investment portfolio simulator from our free stock screener by clicking on the orange-colored + button and selecting a virtual portfolio to add the stock to. The ensuing window allows you to add the stock (or ETF) to the portfolio or run the simulation for that matter. You can also get to the investment portfolio simulator from the company profile page of any stock or ETF by clicking on the orange colored + button to perform your portfolio analysis.