Portfolio management is a complex and strategic financial function. It requires making information-driven decisions, matching investments with financial objectives, and reducing monetary risk by diversifying investments.

Investors looking to enhance their portfolio have similar goals:

  • Determine financial objectives and investment durations
  • Select investment options and build a diversified portfolio
  • Monitor the performance of investments

Many aspects of portfolio management justify a dedicated dashboard. This example focuses on the performance monitoring of an existing portfolio based on industry sectors.

Through effective data visualization, Wyn Enterprise can help you design dashboards and reports to analyze and highlight the performance of stock portfolios.

Use the year slicer above to observe how the portfolio performed in the given years. A portfolio summary section on the left displays important KPIs that give an investor a clear picture on their stocks' performance.

KPIs provide the following insights:

Portfolio Value

The annual measure of returns on the investments done. The value displays the profits and losses yielded on the total stocks purchased.

Yield Cost Ratio

A positive and growing ratio indicates sound investments with growing dividends. This ratio is calculated by dividing the annual dividend by the original purchase price of a single share.

For example, if an investor buys shares of ABC for $10 per share, and ABC pays a $1 annual dividend, then the yield on cost is $1 / $10 = 10%.

Total Annual Dividends

The amount of dividends the investor receives in a year.

Unrealized Gains

An unrealized gain or loss shows when the value of the stock increases or decreases after being purchased, but before the investor sells the stock. In other words, it is a profit or loss that exists only on paper.

Taking the above example, if the ABC's stock price drops to $3 per share, the investor experiences an unrealized loss of $7 per share, but the stock has not been sold. Let's presume that now the price of the stock soars to $18 per share. Since the shares have not yet been sold, the investor has an unrealized gain of $8 per share.

Visualize Your Stock Portfolio

As an investor, it is important to keep track of over investment or under investment in a given sector. Such a portfolio may require rebalancing. A treemap visualization displays quantities of stocks for a category, represented by area size.

Treemaps

Treemaps are often recommended for depicting distributed and hierarchical data. For example, the visualization below shows clearly that this investor’s portfolio has the highest quantity of stock in the technology sector, the largest block.

Bar Charts

The bar chart displays the relationship between dividend yield and unrealized gains/losses. The most important items to look at in this particular chart are those which provide high dividends and low unrealized gains, and vice versa. The portfolio manager then makes an informed decision to either sit on a pile of unrealized gains/losses, or buy/sell the stock to help rebalance the number of shares with greater yield.

An investment style box is a method that categorizes stock on the basis of market capitalization and valuation. This chart helps the investor evaluate the diversification of a portfolio, and balance between the potential risk and return. For example, large-cap and blend stocks tend to be less volatile, and therefore less risky.

Conversely, small-cap and growth stocks carry greater risk as a result of higher volatility.

The horizontal axis on this chart reflects the market cap. The vertical axis categorizes the stock by valuation.

Pie Charts

The pie chart below represents country exposure, displaying the percentage of stocks held internationally. Pie charts help show percentages and sizes of different categories but can be ambiguous when representing data if there are many categories or varying data points. The pie chart makes sense for this visualization since there are only three values to display.

Sector Summary Tables

The Sector Summary table presents figures for financial advisors and portfolio managers. The table provides high-level visual indicators that help investors identify sectors with good or bad yield. Based on these numbers, the portfolio stakeholder(s) can do external research into specific sectors and gain better insight to advise their investments.

Data tells a clear story. Diversified investments and sound investment decisions ensure peace of mind. Managing, maintaining, and tracking your portfolio can be overwhelming. Combining your data into comprehensive visualizations in a single location can provide new insights into your investments.

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