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Benchmark Comparison

The Benchmark Comparison page lets you evaluate how your portfolio performs relative to market indices. This is one of the most important tools for understanding whether your investment decisions add value compared to simply investing in an index fund.

Prerequisites​

Before using this page, you need to:

  1. Have at least one benchmark configured for your portfolio -- see Benchmarks
  2. Have sufficient transaction history for meaningful comparison

Accessing Benchmark Comparison​

Navigate to Performance > Benchmark Comparison from the sidebar.

Page Sections​

Summary Cards​

At the top of the page, three cards show headline numbers for the selected time period:

CardDescription
Portfolio ReturnYour portfolio's total return (percentage)
Benchmark ReturnThe benchmark index's return over the same period
AlphaThe difference: Portfolio Return minus Benchmark Return. Positive alpha means you outperformed.

Benchmark summary cards

Performance Chart​

A line chart showing your portfolio and benchmark(s) over time, normalised to the same starting value for fair comparison.

  • Blue line -- Your portfolio
  • Other coloured lines -- Each benchmark index
  • X-axis -- Time
  • Y-axis -- Normalised value (both start at the same point)

This chart makes it easy to see at a glance whether your portfolio has outperformed or underperformed the benchmark over time.

Benchmark performance chart

Period Returns Table​

A table comparing returns across different time periods:

PeriodPortfolioBenchmarkDifference
1 Day+0.3%+0.1%+0.2%
1 Week+1.2%+0.8%+0.4%
1 Month-2.1%-1.5%-0.6%
3 Months+4.5%+3.8%+0.7%
6 Months+8.2%+6.9%+1.3%
1 Year+15.3%+12.1%+3.2%

Risk Metrics​

Key risk-adjusted performance indicators:

Volatility​

How much your portfolio's returns fluctuate. Measured as the standard deviation of returns.

  • Lower = more stable, less risky
  • Higher = more volatile, more risky

Sharpe Ratio​

Measures risk-adjusted return. It answers: "How much return am I getting for each unit of risk?"

  • Above 1.0 = generally good
  • Above 2.0 = very good
  • Below 0 = you are losing money or returns do not compensate for the risk

Formula: (Portfolio Return - Risk-Free Rate) / Portfolio Volatility

Max Drawdown​

The largest peak-to-trough decline in your portfolio value during the selected period. This shows your worst-case loss scenario.

  • -10% means your portfolio dropped 10% from its highest point to its lowest point
  • Smaller (closer to 0%) is better

Drawdown Chart​

A visual showing the depth and duration of drawdowns over time for your portfolio and the benchmark.

  • The Y-axis shows the drawdown percentage (always negative or zero)
  • The X-axis shows time
  • Deeper dips indicate larger peak-to-trough losses
  • Wider dips indicate longer recovery periods

Benchmark drawdown chart

Interpreting Your Results​

Positive Alpha​

Your portfolio outperformed the benchmark. Your stock selection or timing added value compared to the index.

Negative Alpha​

Your portfolio underperformed. You would have earned more by holding the benchmark index. This does not necessarily mean your strategy is wrong -- it depends on your risk tolerance and investment timeframe.

High Volatility with Low Return​

If your portfolio is more volatile than the benchmark but has lower returns, your risk-adjusted performance is poor. Consider whether the risk is justified.

Low Sharpe Ratio​

A Sharpe ratio below 1.0 suggests your returns may not adequately compensate for the risk you are taking. Compare against the benchmark's Sharpe ratio.

tip

Benchmark comparison is most meaningful over longer periods (6 months or more). Short-term comparisons can be heavily influenced by individual transactions or market events.

Troubleshooting​

ProblemSolution
"No benchmark configured" messageAdd a benchmark in Portfolio Settings.
Benchmark data is missing or incompleteBenchmark data takes a few minutes to populate after adding. Wait and refresh.
Chart starts at different pointsBoth lines are normalised to the same starting value. The chart starts from the date of your earliest transaction.
Risk metrics show "N/A"Insufficient data. You need at least 30 days of portfolio history for meaningful risk calculations.