Portfolio Analysis

Comprehensive portfolio analysis for cryptocurrency holdings with advanced metrics, risk assessment, and optimization recommendations.

Usage

Analyze the user's complete crypto portfolio to provide insights on:

• Asset allocation and diversification
• Risk metrics (Sharpe ratio, volatility, max drawdown)
• Performance attribution
• Correlation analysis
• Rebalancing recommendations

Implementation

1. Portfolio Analytics Engine

class PortfolioAnalyzer {
    constructor() {
        this.riskFreeRate = 0.02; // 2% annual risk-free rate
        this.historicalData = new Map();
        this.correlationMatrix = null;
    }

    async analyzePortfolio(positions) {
        // Fetch current prices and calculate values
        const portfolioData = await this.enrichPositions(positions);

        // Calculate core metrics
        const metrics = {
            totalValue: this.calculateTotalValue(portfolioData),
            totalCost: this.calculateTotalCost(portfolioData),
            totalPnL: this.calculateTotalPnL(portfolioData),
            allocation: this.calculateAllocation(portfolioData),
            concentration: this.calculateConcentration(portfolioData),
…

2. Portfolio Visualization

class PortfolioVisualizer {
    generateReport(analysis) {
        return `
╔════════════════════════════════════════════════════════════════════════════╗
║                          PORTFOLIO ANALYSIS REPORT                         ║
╠════════════════════════════════════════════════════════════════════════════╣
║                              SUMMARY METRICS                               ║
╠════════════════════════════════════════════════════════════════════════════╣
║ Total Value:        $${analysis.metrics.totalValue.toFixed(2).padEnd(55)} ║
║ Total Cost:         $${analysis.metrics.totalCost.toFixed(2).padEnd(55)} ║
║ Total P&L:          ${this.formatPnL(analysis.metrics.totalPnL).padEnd(56)} ║
║ Total Return:       ${this.formatPercentage(analysis.metrics.totalReturn).padEnd(56)} ║
╠════════════════════════════════════════════════════════════════════════════╣
║                             RISK METRICS                                   ║
╠════════════════════════════════════════════════════════════════════════════╣
║ Risk Level:         ${analysis.riskAssessment.level.padEnd(56)} ║
║ Risk Score:         ${(analysis.riskAssessment.overallScore + '/100').padEnd(56)} ║
║ Sharpe Ratio:       ${analysis.metrics.sharpeRatio?.value || 'N/A'.padEnd(56)} ║
…

3. Optimization Strategies

class PortfolioOptimizer {
    suggestOptimizations(metrics) {
        const suggestions = [];

        // Diversification suggestions
        if (metrics.concentration.effectiveAssets < 3) {
            suggestions.push({
                priority: 'HIGH',
                category: 'DIVERSIFICATION',
                action: 'Add more uncorrelated assets',
                benefit: 'Reduce concentration risk by 30-40%',
                implementation: `
                    Consider adding:
                    - Large cap altcoins (ETH, BNB) if heavily in BTC
                    - DeFi tokens if heavily in L1s
                    - Stablecoins for risk reduction
                `
            });
…

Error Handling

async function executePortfolioAnalysis() {
    try {
        const analyzer = new PortfolioAnalyzer();
        const visualizer = new PortfolioVisualizer();

        // Get all open positions
        const positions = await getOpenPositions();

        if (positions.length === 0) {
            console.log('No positions found. Start by tracking some positions first.');
            return;
        }

        // Run analysis
        console.log('Analyzing portfolio...');
        const analysis = await analyzer.analyzePortfolio(positions);

        // Display report
…

This comprehensive portfolio analysis command provides institutional-grade analytics for crypto portfolios with actionable insights and optimization recommendations.