Portfolio risk alert methodology
This is Guardfolio's reference page for how portfolio-level alerts are defined. Use it for signal categories, threshold logic, and scope. If you want plain-English scenarios instead, see common alert triggers and examples.
Core idea: Monitoring compares live or synced holdings to predefined portfolio-level thresholds and baselines. This page explains what Guardfolio means by concentration, drift, overlap, volatility, and drawdown alerts, and what those alerts are not intended to do.
What this page covers
- Definitions of alert categories and the kinds of portfolio changes they capture.
- How portfolio-level monitoring differs from single-stock price notifications.
- Where to find the metric definitions and benchmark references behind the alerts.
What typically feeds an alert
- Concentration — a position, sector, or theme grows beyond a set share of total value.
- Overlap — multiple funds contribute to the same underlying exposure (often seen via look-through and overlap tools).
- Allocation drift — weights move away from a target mix as markets move.
- Volatility and drawdown — portfolio risk measures move outside a comfort band (definitions: metrics methodology).
What alerts are not
- Not a guarantee of future losses or gains.
- Not a substitute for tax, legal, or comprehensive financial planning.
- Not a “buy/sell” instruction—only a flag that a metric crossed a rule you (or defaults) set.
Related reading
- Portfolio monitoring — product overview
- Common portfolio risk alert triggers and examples — worked scenarios in plain English
- Portfolio alerts — alert types
Guardfolio is an informational tool. For personalized advice, work with a qualified professional.