Portfolio Stress Testing

Portfolio Stress Testing

Understand how your portfolio handles stress.

What is Stress Testing?

Simulating adverse market conditions to see potential impact on your portfolio.

Scenarios Tested

Market Crash

• 30% market decline
• Credit freeze
• Liquidity crisis

Economic Recession

• Rising defaults
• Reduced returns
• Extended recovery

Black Swan Events

• Extreme scenarios
• Historical crisis replay
• Correlation breakdown

Running a Stress Test

1. 1. Go to Tools > Risk Assessment
2. 2. Click Stress Test
3. 3. Select scenarios
4. 4. View projected impact
5. 5. Get mitigation suggestions

Interpreting Results

• Maximum potential loss
• Recovery time estimate
• Diversification benefit
• Risk reduction options

Using Results

• Adjust allocations
• Increase diversification
• Set stop-losses
• Prepare contingencies