What-if analysis can be performed in just 3 steps:
Step 1: Create a clone of the portfolio
In Portfolios tab, drag and drop the portfolio you are interested to perform what-if analysis to the central panel. Then, in the right panel, you will see an icon to create the clone:
Step 2: Edit the clone
When you click the button from Step 1, an editor with all properties and positions will open (see figure below):
You can quickly change many properties of the original portfolio, such as name, date, base currency and net asset value. Additionally, you can easily modify the contents of the original portfolio as follows:
- To remove positions, just select them and click on the trash icon at the end of the list.
- To change a position quantity, just edit the Contracts/Shares field(s)
- To add a new position, just click on the button +Add Position
The image above illustrates a portfolio with 100 shares of Apple and 100 shares of Facebook that has been cloned. A new hedge was added to the portfolio, consisting of 1 at-the-money put option on SPY.
Step 3: Compare Original and Clone
Finally you can superimpose the original and clone with a template such as Stress Test Comparison
The unhedged portfolio is the light green and the portfolio with the put option is the dark green. Portfolio/Wealth managers can quickly ascertain the expected behavior of the trade just before executing it. All the process takes a few seconds from beginning to end.