The 12D framework
The 12 dimensions of crypto portfolio health
A crypto portfolio health score is only as honest as the dimensions it measures. Crypto Clarity AI scores your portfolio across 12, concentration, correlation, diversification, drawdown, volatility, liquidity, allocation balance, large-cap stability, altcoin fragility, yield quality, rebalance readiness, and conviction vs overexposure. Each is scored on its own 0-100 scale so you see exactly where your portfolio is strong and where the hidden downside is sitting.
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1. Concentration risk
Flags when one asset exceeds a healthy share of your portfolio. Uses the Herfindahl-Hirschman Index applied to portfolio weights.
2. Diversification
Measures whether holdings span enough sectors and use cases, not just the number of coins held.
3. Volatility exposure
Scores price-swing risk using 180-day annualized volatility for each holding.
4. Liquidity
Checks whether your position size is reasonable relative to each asset's 24h trading volume.
5. Drawdown risk
Estimates how far your portfolio could fall in a market-wide downturn using historical max drawdown data.
6. Profitability position
Identifies which holdings are underwater vs carrying unrealized gains relative to entry.
7. Allocation balance
Evaluates whether capital is distributed intentionally or piled into a few bets.
8. Large-cap stability
Checks exposure to anchor assets like BTC and ETH that reduce overall portfolio fragility.
9. Altcoin fragility
Flags small-cap and micro-cap positions statistically more likely to experience severe drawdowns.
10. Yield quality
Scores staking and yield positions by APY sustainability, not just headline rate.
11. Rebalance readiness
Detects portfolio drift and shows exact dollar amounts to buy and sell, based on your strategy.
12. Conviction vs overexposure
Uses Pearson correlation to detect when 'diversified' assets actually move in lockstep.
How the dimensions combine into one score
Each dimension is scored independently, then combined using a weighted average. Higher-impact dimensions like concentration risk, drawdown risk, and correlation carry more weight than informational dimensions like profitability position. The full weighting and statistical methods are documented in the methodology.
How the score reacts to a 2018-style crash
The 12D score is also a stress-test score. Every analysis re-runs your portfolio through four crash scenarios, including a 2018-style crypto winter. Read more on how to stress-test a crypto portfolio, crypto concentration risk, and BTC-heavy portfolio risk.
Get your 12D health score
Enter your holdings and see your score across all 12 dimensions in under 60 seconds.