Category Risk (Stand-Alone)

The Category Risk provides a baseline measure of risk for each individual sub-portfolio (e.g., all holdings classified as 'Equity').

Metric	Calculation Principle
Category Volatility	The calculated volatility (standard deviation) of the sub-portfolio's return series.
Category VaR	The VaR of the sub-portfolio's return series.
Category CVaR	The CVaR of the sub-portfolio's return series, or the expected loss in the tail of the sub-portfolio's return distribution.

Calculation: The system first isolates the returns of all assets belonging to a specific category (like the returns of all 'Crypto' holdings, weighted by their allocation in the full portfolio). It then calculates the stand-alone risk measure (Volatility, VaR, or CVaR) on this aggregated sub-portfolio return series.

Interpretation: This value tells you the absolute risk inherent to the asset class itself. It is useful for benchmarking the inherent riskiness of one category against another, but it does not account for how that category interacts with the rest of the portfolio (i.e., its diversification effect). Since it is calculated in isolation, the sum of all Category Risk values will typically be higher than the total portfolio risk, with the difference representing the total diversification benefit achieved by combining them.