Diversification Score Calculator
How concentrated is your portfolio? Herfindahl-based effective number of holdings and a 0-100 diversification score.
Formula
Five holdings at 35/25/20/12/8 behave like ~3.5 equal positions โ the top names carry the portfolio. Effective-N strips the illusion of breadth. True diversification needs low correlation too, not just many names; ten correlated banks is one bet.
Not financial advice โ for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need diversification score calculator results fast? Analysts, founders, traders and finance professionals use the Diversification Score Calculator to skip the spreadsheet and get a defensible answer in one step โ free, private and instant.
About Diversification Score Calculator
How concentrated is your portfolio? Herfindahl-based effective number of holdings and a 0-100 diversification score. Five holdings at 35/25/20/12/8 behave like ~3.5 equal positions โ the top names carry the portfolio. Effective-N strips the illusion of breadth. True diversification needs low correlation too, not just many names; ten correlated banks is one bet. The governing relationship is HHI = ฮฃ wแตขยฒ; effective holdings = 1/HHI. The Diversification Score Calculator computes entirely in your browser โ free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Diversification Score Calculator
- 1Enter Holding 1 weight (%), Holding 2 weight (%), Holding 3 weight (%), Holding 4 weight (%), Holding 5 weight (%) into the Diversification Score Calculator.
- 2The result is computed automatically using HHI = ฮฃ wแตขยฒ; effective holdings = 1/HHI โ there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Diversification Score Calculator?
- โComputes diversification score calculator instantly with the correct formula โ no spreadsheet needed
- โ100% free and unlimited, with no sign-up, login or paywall
- โRuns entirely in your browser, so the figures you enter stay private
- โShows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Diversification Score Calculator?+
Diversification Score Calculator uses HHI = ฮฃ wแตขยฒ; effective holdings = 1/HHI. Five holdings at 35/25/20/12/8 behave like ~3. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Diversification Score Calculator need?+
Enter Holding 1 weight (%), Holding 2 weight (%), Holding 3 weight (%), Holding 4 weight (%), Holding 5 weight (%) and the result updates immediately โ there is no button to press. Change any value to model a different scenario in real time.
Is the Diversification Score Calculator free, and is my data private?+
Yes โ it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Diversification Score Calculator?+
5 equal positions โ the top names carry the portfolio. Effective-N strips the illusion of breadth. True diversification needs low correlation too, not just many names; ten correlated banks is one bet.
What is the Diversification Score Calculator based on?+
The method follows authoritative sources: Herfindahl-Hirschman index applied to portfolios. The formula and references are shown on the page so you can verify and cite the result.
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