RiskSim: Risk-Return and Asset Correlation Simulator

RiskSim is a Python-based tool designed for portfolio and risk simulation. It offers an intuitive interface to model risk-return dynamics and assess portfolio performance under various asset correlation scenarios, providing deep insights into risk management strategies and investment outcomes.

Link to the app

Click here to access the app

Features

• Risk-Return Analysis: Simulate various risk-return scenarios using adjustable parameters like win rate, trades per year, risk per trade, and return per unit of risk (RPUR).
• Asset Correlation Simulator: Generate and visualize portfolio performance based on customizable asset correlation matrices, with options for single or random correlation ranges.

Screenshots

Risk-Return Analysis Page

Risk-Return Analysis Page

Asset Correlation Simulation Page

Asset Correlation Simulation Page

Project Structure

RiskSim/
│
├── pages/
│   ├── 1_🎯_risk_return_analysis.py   # Main page for risk-return simulations
│   └── 2_📈_asset_correlation.py     # Main page for asset correlation simulations
│
├── config/
│   ├── slider_configs.py              # Configuration for slider inputs in the Streamlit UI
│   └── __init__.py                    # Init file for config
│
├── utils/
│   ├── risk_simulation.py             # Core simulation logic for risk management and portfolio performance
│   └── style.py                       # Styling and layout helpers for Streamlit app
│
├── docs/images/                       # Image assets for documentation and app UI
│   ├── header_image.jpg
│   ├── image.png
│   ├── image_1.png
│   ├── image_2.png
│   ├── image_3.png
│   └── image_4.png
│
├── venv/                              # Python virtual environment (optional)
├── Welcome.py                         # Main entry point for the app
├── README.md                          # This file
├── LICENSE.txt                        # License information
├── .gitignore                         # Files and directories to be ignored by git
└── requirements.txt                   # Python dependencies

Installation

To get started with RiskSim, follow these steps:

Prerequisites

Ensure you have Python 3.8+ installed. You'll also need pip to install the required dependencies.

Clone the Repository

git clone https://github.com/your-username/RiskSim.git
cd RiskSim

Create a Virtual Environment (Optional but Recommended)

python -m venv venv
source venv/bin/activate  # On Windows use `venv\Scripts�ctivate`

Install Dependencies

Install the required Python packages by running:

pip install -r requirements.txt

Run the Application

Start the application using Streamlit:

streamlit run Welcome.py

This will launch the RiskSim app in your browser.

Usage

Risk-Return Analysis

• Navigate to the Risk-Return Analysis section to simulate various risk-return scenarios.
• You can adjust the number of trades per year, win rate, risk per trade, and RPUR.
• View detailed metrics such as expected drawdown, Sharpe ratio, and more.

Asset Correlation Simulation

• Use the Asset Correlation page to simulate portfolios with different asset correlations.
• Choose between fixed or random correlation settings.
• Visualize performance and compute portfolio metrics under various correlation regimes.

License

This project is licensed under the MIT License. See the LICENSE.txt file for details.

Author

Made with ❤️ by Chris

Acknowledgments

• Streamlit
• Plotly

Contributing

Contributions are welcome! Feel free to fork the repository, make improvements, and submit a pull request.