Last Updated: July 11, 2025
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Overview
This module delivers risk-aware analysis of portfolio risks and asset correlations. It evaluates volatility, concentration risk, and inter-asset relationships to identify vulnerabilities and diversification opportunities.
The RISI Framework Breakdown for Risk Assessment and Correlation Modeling
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional portfolio risk analyst. |
| I | Insight | Analyzes asset volatilities, correlations, and concentration risks within the portfolio. |
| S | Strategy | Simulates risk mitigation strategies and rebalancing based on correlation models. |
| I | Impact | Provides actionable guidance on managing portfolio risk and enhancing diversification. |
How to Use the Risk Assessment and Correlation Modeling Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] with your target portfolio.
What to enter for [TARGET]:
A brief summary of your portfolio composition, e.g.:
- “A diversified commercial real estate portfolio with office, retail, and industrial assets totaling $50 million across three major metro areas.”
- Or, “Portfolio focused on retail properties with average occupancy rates of 90% and lease terms averaging 5 years.”
If you want to keep it generic, you can say something like:
- “A mid-sized commercial real estate portfolio diversified across sectors and geographies.”
- Role Prompt:
Activate ProPortfolio Mode for Real Estate Institutional Level Analysis - Risk Analysis Prompt:
Summarize portfolio risk profile, asset volatilities, and correlations in [TARGET]. Limit output to one paragraph. - Correlation Modeling Prompt:
Analyze inter-asset correlations and concentration risks in [TARGET]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional risk mitigation and portfolio rebalancing strategies in [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize investment implications from risk assessment and correlation modeling. Provide one clear, actionable paragraph grounded in institutional behavior.
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