Understanding Your Portfolio Allocation Treemap: Sectors and Industry Groups

This article explains how to use the dynamic Portfolio Treemap on your dashboard. This powerful visualization helps you understand your investment diversification at both a broad Sector level and a more granular Industry Group level.

Locating Your Portfolio Allocation Treemap

You'll find the Allocation Treemap displayed in the Portfolio page, within the Allocation tab.

What the Portfolio Treemap Shows You

The treemap provides a visual representation of your portfolio's allocation, allowing you to see how your investments are distributed across different market categories. It features two levels of hierarchy:

• Sector Level (Default View): This is the initial view you'll see. It displays large "boxes" representing major market sectors, including an "Others" category for unclassified holdings.

• Industry Group Level: You can click on any Sector box to "drill down" and see the Industry Groups within that specific sector.

Key Information in Each Box (Both Levels):

Regardless of the hierarchy level, each box in the treemap will clearly display:

• Name: The name of the Sector (e.g., "Energy") or Industry Group (e.g., "Oil & Gas Exploration & Production").

• Current Portfolio Value: The total current market value (in dollars) of your holdings within that specific Sector or Industry Group.

• Percentage Owned: Your portfolio's exact percentage allocation to that specific Sector or Industry Group.

Understanding the Treemap's Structure and Dynamics

First Hierarchy: Sector Level

• Default View: When the treemap first loads, you'll see a collection of distinct boxes, each representing one of the defined market sectors, including "Others."

• Size and Color Matter: The size and color of each Sector box is directly proportional to the percentage of your total portfolio value allocated to that Sector. Larger and darker boxes mean a greater concentration of your investments in that area.

• Minimum Visibility in the Sector view: Even if you have 0% ownership in a particular Sector, a small box will still be visible to ensure you see all potential diversification categories.

• Interactive: All Sector boxes are interactive. Clicking on a Sector box will seamlessly transition the treemap to the Industry Group level for that specific Sector.

Second Hierarchy: Industry Group Level

• Drill-Down View: When you click on a Sector box, the treemap will display distinct boxes only for the Industry Groups you currently own within that chosen Sector.

• Proportional Sizing: Similar to the Sector level, the size and color of each Industry Group box is proportional to the percentage of your portfolio value allocated to that specific Industry Group.

• Navigation: You can usually navigate back to the Sector level by clicking a "back" button or a similar control within the treemap interface.

Dynamic Updates

The percentages and values displayed in the treemap are calculated accurately based on your current portfolio holdings and their real-time market values. The treemap is fully dynamic and will automatically update in response to any changes in your investments or market fluctuations. It also updates immediately when you switch between the Sector and Industry Group hierarchies.

Data Categorization

Every single one of your owned trades is precisely categorized into both a Sector and an Industry Group. Any trades that cannot be assigned to a specific defined Sector will be grouped under the "Others" Sector. For such cases, the Industry Group will be appropriately labeled as Other.

Highlight

By using the Portfolio Allocation Treemap, you gain an intuitive and powerful way to visualize your investment diversification at a glance, allowing you to compare your holdings against relevant benchmarks and make more informed decisions about your portfolio's balance.

If you have any questions or encounter any issues, please contact our support team for assistance at support@orizonanalytics.io