What is Timeline in Portfolio Analysis?

Portfolio Timeline is one of the tools offered by Alpha Builder for portfolio analysis. It enables users to identify periods of historic risk and outperformance of stocks in a portfolio across a time period. The plot displays circles representing each instrument, with larger circles, indicating better risk-adjusted-returns, at the top right-hand corner and smaller circles, indicating poor risk-adjusted-returns at the bottom left-hand corner.

In this plot, larger green and yellow coloured circles indicate better investment candidates, while smaller purple coloured circles indicate less favourable stocks. This portfolio analysis tool can be applied to both user saved portfolios and the more than 100 pre-built portfolios based on themes or sectors.

The timeline helps investors identify stocks among the portfolio that are breaking away from the majority in terms of better or worse risk-adjusted-returns.

Sample Screenshot of Portfolio Timeline for ‘Software’ Industry:

In the above (animated) plot one could see that ADBE started outperforming from 2018.

In summary, Portfolio Timeline helps investors make informed decisions by visually analysing historic Alpha performance of all the instruments within the portfolio, over time.

Follow these easy steps to use Alpha Builder’s tool “Portfolio timeline“:
1. On the home-page, click “Alpha Builder” or select sub-menu item “ALPHA BUILDER” under the “TOOLS” head of the “PRODUCTS” menu.
2. Scroll down the page and click on “Portfolio timeline“.
3. The “Historic Risk-Return plot” is displayed.
4. Click on the circle and see the name of the symbol displayed on the left upper side of the chart.
5. Click on the tag icon, just next to the “Select portfolio :“, to select a portfolio.
6. Follow step-3.

Useful Links:
Portfolio Timeline US
How to Use Alpha Builder (YouTube)