Six-Stock Portfolio Efficient Frontier

Enter mean/std dev + correlations → generate random portfolios (dots + table) and the efficient frontier (line).
Stock Data Fetcher
Use this tool to fetch stock data (ticker + date range) and calculate monthly returns.
If the button doesn’t open: copy/paste the URL into Chrome.
Open Stock Data Fetcher
URL: https://script.google.com/macros/s/AKfycbxao_yHFToaMAs2fuEiYMfHapioFAjIukvBAFyJIOS6ccYL2WAepMMyrO8afpRjsVBA/exec

Enter Stock Data





Diagonal is always 1. You only edit the 15 unique correlations for 6 stocks (ρ12 … ρ56).
Range: -1 to +1
ρ12
ρ13
ρ14
ρ15
ρ16
ρ23
ρ24
ρ25
ρ26
ρ34
ρ35
ρ36
ρ45
ρ46
ρ56
Dots: 0
Frontier points: 0
Min Risk σ (%): —
Max Return (%): —
Blue dots = random portfolios. Red line = efficient frontier (best return for each risk level).

Portfolio Returns and Risks

Stock 1 (%) Stock 2 (%) Stock 3 (%) Stock 4 (%) Stock 5 (%) Stock 6 (%) Expected Return (%) Risk (Std Dev %)

Why This Graph Matters

Imagine you're making a cocktail. Each stock is an ingredient. The way these ingredients mix together (correlation) determines whether your portfolio is smooth and balanced (lower risk) or a risky disaster (higher risk).

How Portfolio Return Works

Your portfolio’s return is the combined return of all stocks you choose, weighted by how much you invest in each one.

Why Correlation is Important

- Low correlation helps reduce risk, making your portfolio more stable.
- High correlation increases risk, as all stocks move together.
- Negative correlation provides the best diversification, balancing gains and losses.

How Correlation Affects Risk

Your portfolio's risk depends on three things: 1) the risk of each individual stock, 2) how much of each stock is included, 3) how the stocks move relative to each other (correlation).

The lower the correlation, the better the diversification and risk reduction.