AI Stock Risk Calculator

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.

AI-Powered Insights

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."

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Position Sizing Recommendations

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.