RISK MANAGEMENT

AI Stock Risk Calculator

Know your risk before you invest. Our AI calculates volatility, drawdown potential, and portfolio impact for any stock in seconds.

Example: NVDA Risk Score (Moderate-High)

0 - Low Risk50 - Moderate100 - High Risk

1.85

Beta (vs S&P 500)

42%

Annual Volatility

-35%

Max Drawdown (1Y)

0.72

Sharpe Ratio

What We Calculate

Beta: How much the stock moves relative to the market. Beta of 1.85 means NVDA moves 85% more than S&P 500 on average - both up and down.

Volatility: Standard deviation of returns. Higher volatility means bigger swings. 42% annual volatility is quite high.

Max Drawdown: Largest peak-to-trough decline in the past year. -35% means at worst, you'd have lost 35% from your high point.

Sharpe Ratio: Risk-adjusted return. Higher is better. Shows if the returns justify the risk taken.

Our AI doesn't just calculate numbers - it interprets them. For NVDA, the AI notes:

"High beta justified by exceptional growth. Risk-takers may find volatility acceptable."
"Max drawdown of -35% occurred during broader tech selloff, not company-specific issues."
"Consider 2-3% position size for balanced portfolios given volatility."
"High correlation with QQQ (0.89) means limited diversification benefit if you own tech."

Based on risk metrics, our AI suggests appropriate position sizes:

Conservative (Risk Score 60+): 1-2% of portfolio

Moderate (Risk Score 40-60): 3-5% of portfolio

Aggressive (Risk Score under 40): 5-10% of portfolio

These are suggestions based on typical risk tolerance. Adjust based on your personal situation and investment goals.

Free risk analysis for any stock