Portfolio Tools
Monte Carlo Simulation
Portfolio Options
Use Shares
Custom Expected Returns
Custom Volatility
Rebalancing & Cash Flow Options
None
$
None
Timeframe
Financial Options
USD
Convert to Base Currency
%
Data Options
Reinvest Dividends
Fill Missing Price Data
Forecasting and Modeling Options
Sample Mean
Sample Covariance
Summary
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Monte Carlo Simulation
The Monte Carlo simulation is a statistical method used to forecast portfolio returns by generating a wide range of potential outcomes through random sampling from historical asset price data. It helps investors assess the potential risk and return of a portfolio under various market conditions. The simulation takes into account the initial investment and optionally simulates cash flow scenarios like fixed contributions, fixed withdrawals, or percentage withdrawals.
IMPORTANT: The forecast generated through Monte Carlo simulations is purely hypothetical and does not guarantee future returns. Investment decisions should be made with consideration of various factors, and past performance is not indicative of future results.
Monte Carlo Metrics
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Simulated Portfolio Prices
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