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ml4t-exposure-analysis skillA

ml4t-exposure-analysis is agent-read markdown (skill) from ml4t/skills: Decompose portfolio into factor, sector, and concentration exposures. Use when checking for unintended bets or risk concentrations..

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What the file says

# Exposure Analysis

A portfolio of 50 stocks can look diversified by count while having 80% of its risk in a single factor. Without exposure decomposition, you cannot distinguish between intended alpha bets and unintended factor tilts.

## The Problem

Position weights tell you what you own, not what risks you are taking. A "diversified" tech-heavy portfolio may have a market beta of 1.4, a momentum loading of +0.6, and 60% sector concentration in technology - meaning most of its variance comes from three correlated bets, not 50 independent ones. Exposure analysis decomposes portfolio risk into factor loadings, sector weights, and concentration measures so you can verify that the portfolio matches your thesis.

## The Pattern

### WRONG
```python
import numpy as np

# Only look at position weights
weights = np.array([0.05, 0.04, 0.03, ...])  # 50 stocks
print(f"Number of positions: {len(weights)}")
print(f"Max position: {weights.max():.1%}")
# "50 positions, max 5% - looks diversified!"
# But 35 of them are correlated growth stocks with beta > 1.3
```

### CORRECT
```python
import numpy as np
from sklearn.linear_model import LinearRegression

# Factor exposure via regression
…

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How to install

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Source

GitHub

ml4t/skills · 19 stars · license Apache-2.0 · pushed 2026-09-24 · branch main

API

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GET https://markdownregistry.com/api/v1/blob/1da5e316eb9f4b61a506be651603a7b1d2dac508ece1112483b72baf381f22d5

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