Stress Testing
Historical scenario analysis showing potential portfolio impact during market crises.
1
Historical Stress Scenarios
Stress testing applies historical market crashes to your current portfolio. We model how each holding would have responded based on its beta and sector characteristics.
2
Beta-Adjusted Impact
Beta measures a stock's sensitivity to market movements. A beta of 1.5 means the stock typically moves 50% more than the market. This amplifies (or dampens) stress scenario impacts.
3
Sector Multiplier
Each sector performs differently during market crises. Financial stocks crashed hardest in 2008; tech crashed hardest in 2000. Sector multipliers capture these historical patterns.