RI

risk-metrics-calculation

A toolkit for calculating portfolio risk metrics and risk-adjusted performance.

Install

mkdir -p .claude/skills/risk-metrics-calculation && curl -L -o skill.zip "https://agentskills.codes/api/skills/download/446" && unzip -o skill.zip -d .claude/skills/risk-metrics-calculation && rm skill.zip

Installs to .claude/skills/risk-metrics-calculation

Activation

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Calculate portfolio risk metrics including VaR, CVaR, Sharpe, Sortino, and drawdown analysis. Use when measuring portfolio risk, implementing risk limits, or building risk monitoring systems.
191 chars✓ has a “when” trigger
Intermediate

Key capabilities

  • Compute Value at Risk and Expected Shortfall for tail risk assessment
  • Determine maximum drawdown and Calmar ratios for capital preservation analysis
  • Evaluate volatility using standard deviation and beta
  • Generate performance metrics including Sharpe and Sortino ratios
  • Support time horizons ranging from intraday to annual intervals

How it works

The skill processes portfolio return data across specified time horizons to categorize and compute metrics for volatility, tail risk, drawdown, and risk-adjusted performance.

Inputs & outputs

You give it
Portfolio return time series data
You get back
Quantitative risk metric values and drawdown statistics

When to use risk-metrics-calculation

  • Calculate portfolio VaR
  • Assess risk-adjusted performance with Sharpe ratios
  • Monitor historical drawdowns
  • Set position sizes based on risk limits

About this skill

Risk Metrics Calculation

Comprehensive risk measurement toolkit for portfolio management, including Value at Risk, Expected Shortfall, and drawdown analysis.

When to Use This Skill

  • Measuring portfolio risk
  • Implementing risk limits
  • Building risk dashboards
  • Calculating risk-adjusted returns
  • Setting position sizes
  • Regulatory reporting

Core Concepts

1. Risk Metric Categories

CategoryMetricsUse Case
VolatilityStd Dev, BetaGeneral risk
Tail RiskVaR, CVaRExtreme losses
DrawdownMax DD, CalmarCapital preservation
Risk-AdjustedSharpe, SortinoPerformance

2. Time Horizons

Intraday:   Minute/hourly VaR for day traders
Daily:      Standard risk reporting
Weekly:     Rebalancing decisions
Monthly:    Performance attribution
Annual:     Strategic allocation

Detailed patterns and worked examples

Detailed pattern documentation lives in references/details.md. Read that file when the navigation tier above is insufficient.

Best Practices

Do's

  • Use multiple metrics - No single metric captures all risk
  • Consider tail risk - VaR isn't enough, use CVaR
  • Rolling analysis - Risk changes over time
  • Stress test - Historical and hypothetical
  • Document assumptions - Distribution, lookback, etc.

Don'ts

  • Don't rely on VaR alone - Underestimates tail risk
  • Don't assume normality - Returns are fat-tailed
  • Don't ignore correlation - Increases in stress
  • Don't use short lookbacks - Miss regime changes
  • Don't forget transaction costs - Affects realized risk

When not to use it

  • When assuming normal distribution of returns
  • When relying exclusively on Value at Risk without tail risk metrics
  • When using short lookback periods that miss regime changes

Limitations

  • Requires consideration of transaction costs for accurate realized risk
  • Does not account for correlation increases during market stress unless explicitly modeled

How it compares

This approach automates the calculation of multiple risk categories simultaneously rather than manually computing individual metrics in spreadsheets.

Compared to similar skills

risk-metrics-calculation side by side with the closest alternatives in the catalog.

SkillInstallsUpdatedSafetyDifficulty
risk-metrics-calculation (this skill)82moNo flagsIntermediate
quant-analyst1032moNo flagsAdvanced
stock-analyzer712moReviewBeginner
pair-trade-screener111moReviewAdvanced

Try saying

Example prompts that trigger this skill in your AI assistant.

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