Portfolio Lab 🧪 - is a place where investor can test their investment ideas, build a suitable investment portfolio and evaluate the performance and risk of a combination of assets.
You can run two types of tests in Portfolio Lab:
- Calculator 🧮 - calculate dividend income and dividend yield, check diversification and metrics of the portfolio
- Backtest 📈 - check the portfolio on historical data, compare its behavior with the benchmark
How can this help you?
Use the Portfolio Lab when building a new investment portfolio or if you want to optimize your current strategy.
What tasks does the Calculator 🧮 help solve:
- Selection of the optimal combination of div. yield and dividend growth for the Dividend Portfolio
- Building a diversified portfolio - see diversification by sector, region, currency, etc.
- Find out how much money is needed to buy the planned portfolio (if you don't have access to fractional shares)
- Selection of a combination of assets to receive dividend payouts evenly - for example, if you want to receive approximately the same amount of dividends every month
- See how your dividend income/yield will change if you swap one asset for another
What tasks does the Backtest 📈 help solve:
- Study how the portfolio behaves in different market conditions (for example, during a crisis) and see if it meets your expectations
- See how periodic portfolio rebalancing can affect returns and learn if it's worth it for your strategy
- Building a defensive strategy - search for an optimal combination of assets that is most stable during volatile markets
- Compare portfolio behavior with a benchmark, such as S&P 500
How it works?
- You create an investment portfolio (or copy from existing ones) and set target allocation for assets, for example:
![](https://help.snowball-analytics.com/content/images/2023/01/backtest1.gif)
2. Set test parameters.
![](https://help.snowball-analytics.com/content/images/2023/01/backtest2.gif)
3. Check the results of the experiment.
![](https://help.snowball-analytics.com/content/images/2023/01/image.png)
![](https://help.snowball-analytics.com/content/images/2023/01/image-1.png)
4. If you are satisfied with the results, save target allocations of the portfolio. You can then use our Rebalancing tool to make purchases.
![](https://help.snowball-analytics.com/content/images/2023/01/image-2.png)
5. Didn't like the results? Change the composition of the assets and the assets themselves and keep experimenting!
![](https://help.snowball-analytics.com/content/images/2023/01/help-backtest-01.png)
![](https://help.snowball-analytics.com/content/images/2022/08/category-edit-01.png)