forward-risk

Community

Quantify potential future portfolio losses.

AuthorJoelLewis
Version1.0.0
Installs0

System Documentation

What problem does it solve?

This Skill helps users understand and quantify the potential financial losses a portfolio could face under various market conditions, enabling better risk management.

Core Features & Use Cases

  • Value-at-Risk (VaR) Calculation: Estimate maximum potential loss at a given confidence level (e.g., 95% VaR).
  • Conditional VaR (CVaR) / Expected Shortfall: Determine the average loss given that the VaR threshold is breached, providing insight into tail risk.
  • Scenario Analysis & Stress Testing: Simulate portfolio performance under specific adverse market events (e.g., market crashes, interest rate shocks).
  • Risk Decomposition: Identify which specific assets or factors contribute most to the overall portfolio risk (Component VaR, Factor Risk).
  • Use Case: A portfolio manager wants to know the maximum potential loss on their equity portfolio over the next trading day with 99% confidence, and what the average loss would be if that threshold is breached.

Quick Start

Estimate the 95% one-day VaR for a portfolio with given weights and covariance matrix.

Dependency Matrix

Required Modules

numpyscipy

Components

scriptsreferences

💻 Claude Code Installation

Recommended: Let Claude install automatically. Simply copy and paste the text below to Claude Code.

Please help me install this Skill:
Name: forward-risk
Download link: https://github.com/JoelLewis/finance_skills/archive/main.zip#forward-risk

Please download this .zip file, extract it, and install it in the .claude/skills/ directory.
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