The base currency influences the perceived risk of the portfolio in that the forward-looking profit and loss from positions denominated in domestic currencies need to be converted to a common portfolio base currency. For example, an investor with Euro as base currency that invests in Sony Corporation denominated in Yen has 2 inherent risks, namely:
- The price variations of Sony stock in Yen, and
- The variations of the FX between Yen and Euro.
Our calculation engine simulates the currency rates together with other assets to incorporate critical correlation information that would otherwise be lost.
Everysk platform allows the base currency of any portfolio to be changed on-the-fly, using any supported currency. For a list of supported currencies, click here.
You can change the base currency by the time you create a portfolio. For that, please access this link. If you want to change the base currency of an existing portfolio, please follow the steps below:
From the "Portfolios" section, click on the portfolio you want to edit.
Here you can see the Summary screen. Click on "Edit" at the top.
Now edit the "Base currency" and save.