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Adding a portfolio to a Stress Test.

Sometimes you will want to run a stress test against a portfolio and then compare its performance against a second portfolio or a benchmark portfolio. In HiddenLevers you can start with analysing a single portfolio or household and add up to three additional portfolios or households into the same stress test. Seeing as you can also change the stress testing scenario you can quickly see the effect of different scenarios on more than one portfolio at once. This is especially useful for checking manual hedges against the original portfolio and against alternative hedging choices for a wide range of scenarios.

In the following example, we have a savings fund called Scheme A.  A manually hedged alternative designed to limit losses against the Fed Stress Test 2015 is Scheme B.  Using the HiddenLevers Hedging Wizard, a Scheme C has also been produced.  A comparison can be made between all three against the three outcomes of the Fed Stress Test 2015 in HiddenLevers.

In the picture below we have the results of Scheme A under the Fed Stress Test 2015.  To start the comparison we click on the blue "Add Portfolio" button (circled in red):

 

This will open a drop-down menu with the choice of an existing portfolio or creating a new portfolio to add to the stress test:

 

In this case we choose existing to open the "Choose Portfolio" modal:

 

This allows us to choose up to three additonal portfolios to add to the stress test.  To enter our portfolios click in the second text box and start typing the name of the portfolio and the tool will present matching portfolios for you to select from, simply click on the required portfolio:

 

Then repeat for the third portfolio:

 

Now the portfolios are all selected click on the blue button "Run Stress Test" (circled in red in the picture below):

 

The tool will then display the result of the stress test for the three portfolios for the selected outcome.  The outcome can be changed by clicking on the scenario outcome buttons (circled in red below) and the new outcome will be applied to all three portfolios:

 

Each of the summary boxes for each portfolio has three controls (circled in red below) - the plus sign expands the box to show the holdings in the portfolio; the pencil allows you to edit a portfolio on the fly; and the X is to remove the portfolio from the stress test:

 

Below is what the output looks like when the summary boxes have been expanded, showing how individual holdings have performed: