Rebalancing is a sophisticated tool designed to help you realign your portfolio and perform explicit trade planning.
Portfolio rebalancing allows you to set target allocations for your holdings by percentage. You can also define a drift tolerance—the amount you are willing to allow a position to stray from its target. Stock Rover then identifies which assets are out of balance and calculates the exact trades required to return to your desired allocation.
To learn more about the methodology, visit our blog post: Rebalancing Your Portfolio.
The rebalancing facility also facilitates Trade Planning. By switching the planning mode to Quantity, you can manually adjust position sizes, add new tickers, or simulate the elimination of existing positions.
Both rebalancing and trade planning allow you to “test-drive” potential moves. Based on your input, Stock Rover creates a Model Portfolio. You can then compare this planned version against your actual holdings across several key risk and return metrics, including historical return, maximum drawdown, beta, volatility, and the Sharpe ratio.
Additionally, you can compare aggregate financial measures—such as P/E, P/B, and Dividend Yield—as well as sector allocations between your actual and planned portfolios. This ensures that any changes you make align with your broader investment objectives and risk tolerance.
Accessing Rebalancing
Rebalancing is located under Portfolio Tools in the Start Menu. If it is not visible, you can add it by customizing your Start Menu. Simply click the hamburger icon (☰) in the upper left-hand corner to access configuration options.
