What is Portfolio Health

Portfolio Health (https://collective2.com/recommendations/portfolioHealth) is a single numerical score that represents the overall "health" of your Simulated Portfolio, based on each strategy's C2 Score, and the weight within your portfolio of that strategy.

Huh? What is C2 Score?

Collective2's Quant Team is continually analyzing strategy performance. We try to determine which statistical factors, if any, are predictive of future strategy performance. We use a proprietary scoring algorithm to assign a numerical score to every strategy offered on the C2 Platform. We call this the C2 Score.

Although there can be no guarantees about future performance, and while even highly ranked strategies may lose money, we believe that higher-ranked strategies are more likely to do better for Collective2 customers than lower ranked strategies.

The C2 Score looks at statistical factors that may not be immediately obvious when a human glances at a strategy. People are generally attracted to "obvious" performance factors such as percentage-based return, or trade-win percentage. While these factors can be useful, our quantitative analysis has shown us that other less-obvious factors should be included in analysis. The C2 Score includes many of these non-obvious factors.

How to use Portfolio Health

Try to improve it, naturally!

You can click on any of the strategies in the diagram below. If our software sees a way to improve your Portfolio Health, it will make a suggestion.

What do the circles mean?

The larger the circle, the more capital you have deployed into a strategy. The color of each circle represents the quality of the C2 Score for that strategy. Green is best. Red is not best.

Have more questions?