• DATA
  • RISK
  • ACTION
  • HUMAN

How to identify portfolio diversification risks with your AI

Connect your historical return data to your AI client. It will scan for asset pairs that move in lockstep, showing you where your portfolio lacks true protection.

Ask AI about this page

Short answer

How do I find assets that aren't actually diversifying my portfolio?

Your AI calculates correlation coefficients between every asset pair in your data set. It flags specific pairs that move too closely together, revealing where your risk is concentrated. You'll get a clear list of these redundant assets.

The results you get

Where your risk shows up

The AI processes your data to produce these specific outputs.

DATA

Correlation Matrix

The AI builds a grid showing how every asset in your list relates to every other asset based on past returns.

RISK

Concentration Alerts

The agent identifies specific pairs or groups of assets that move almost identically, signaling a lack of diversification.

ACTION

Redundancy List

You get a list of assets that act as duplicates, making it easy to see which ones to swap out.

HUMAN

Strategic Decisions

You review the flagged pairs to decide if the correlation is a market reality or a risk you need to fix.

The workflow

What your AI does when the data arrives.

The AI handles the math so you can focus on your strategy.

  1. Calculate relationships

    The AI processes your historical return series to determine the statistical relationship between every asset pair.

    compute_correlation_matrix

  2. Flag redundancies

    The agent scans the resulting matrix to find pairs that exceed your risk threshold for correlation.

    identify_diversification_risks

  3. Group clusters

    The AI groups highly correlated assets into clusters to show you where your portfolio is leaning too heavily.

    identify_diversification_risks

  4. Report findings

    The agent presents the specific asset pairs that fail your diversification test in a readable format.

    identify_diversification_risks

Try it

Copy these to start.

Use these prompts to kick off the analysis in your chat window.

Starting points

Swap the bracketed text for your actual file names or asset lists.

Asset Correlation Matrix Connector

You're all set. Choose your MCP client and follow the setup instructions.

Connector linkhttps://edge.vinkius.com/vk_preview_jYe5QdFnvGZNesNC47X9VPhZuAETdTnGW3W4DuWJ/mcp

Claude Desktop

Follow the steps below to connect in seconds.

  1. 1In Claude Desktop, open Settings → Connectors.
  2. 2Click “Add custom connector” and paste the connector link above as the remote MCP server URL.
  3. 3Click Add and start a new chat — Asset Correlation Matrix capabilities are ready to use.
Configuration · claude_desktop_config.jsonCopy
{
  "mcpServers": {
    "asset-correlation-matrix-mcp": {
      "url": "https://edge.vinkius.com/vk_preview_jYe5QdFnvGZNesNC47X9VPhZuAETdTnGW3W4DuWJ/mcp"
    }
  }
}
Copy into chat04

  • Run a correlation matrix on the returns in my 'Portfolio_2024.csv' file.

  • Identify any diversification risks in my current list of tech stocks.

  • Check the 'Monthly_Returns' sheet for asset pairs that are too highly correlated.

  • Based on the correlation matrix, which assets in my crypto folder are redundant?

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Start here

Connect Asset Correlation Matrix once, then ask.

Link your data source once. Your credentials stay encrypted, and you can immediately start asking your AI about your portfolio math.

Connect Asset Correlation Matrix to your AI

FAQ

How this task behaves

  • 01

    Can the AI trade these assets for me?

    No. The AI only analyzes the data and identifies risks. You must execute all trades yourself.

  • 02

    Does the AI change my original spreadsheet?

    No. The AI reads your data to perform calculations, but it does not modify or overwrite your files.

  • 03

    What kind of data do I need to provide?

    You need to provide historical return data, typically in a CSV or spreadsheet format, for the assets you want to analyze.

  • 04

    Can it identify risks in real-time?

    The AI analyzes the specific historical data you provide. It does not monitor live market feeds.

  • 05

    Will it tell me which specific stocks to buy?

    No. It identifies which assets are redundant, but the decision to buy new assets is yours.

  • More questions about Asset Correlation Matrix? The Connector page answers them. See everything the Asset Correlation Matrix Connector can do

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