Discover how balanced your investments truly are with the Portfolio Diversification Index Calculator. This tool helps investors measure diversification strength identify concentration risks and optimize allocation for a healthier portfolio that aligns with long term financial goals. Perfect for individuals advisors and institutions seeking smarter asset management strategies.
Portfolio Diversification Index (PDI) Calculator
Scores how balanced your directory mix is across General, Local, Niche, and High‑Authority sites. Tune targets and weights, visualize distribution, and export results.
Inputs
AdvancedDistribution vs Target
| Category | Listings | Actual % | Target % | Δ (pp) |
|---|---|---|---|---|
| Run a calculation to see breakdown | ||||
| Total | 0 | 100% | 100% | |
Under/Over Index & Insights
- Insights will appear here.
Advanced Metrics
- Shannon Entropy (H)
- —
- Hmax (4 cats)
- 2.0000
- Balance Score
- —
- Jensen–Shannon Divergence
- —
- Target Alignment
- —
- Herfindahl–Hirschman Index
- —
Methodology
What is PDI? The Portfolio Diversification Index measures the balance of your directory placements across four categories. It combines three sub‑scores:
- Balance — normalized Shannon entropy:
H = −∑ pᵢ log₂ pᵢ, scaled byHmax=log₂(4)=2soBalance = (H/2)×100. - Target Alignment — 1 − Jensen–Shannon divergence (base‑2) between your actual mix
Pand your target mixT, scaled to 0–100:TA = (1 − JSD(P∥T))×100. - Authority Adequacy — checks your High‑Authority share vs your minimum target:
AA = min(pHigh / targetHigh, 1)×100.
Composite PDI is a weighted sum of these three sub‑scores. All logs are base‑2; zero terms contribute 0. HHI is provided for context (HHI = ∑ pᵢ²; lower is more diversified).
