Performance Heatmap: Your Monthly and Annual Returns at a Glance
At Parqet, we work daily to equip you with advanced visualization tools. These not only provide insight into your portfolios, but also make the associated statistics comprehensible and easy to understand.
By popular request from the community, we are introducing the Performance Heatmap today. The Performance Heatmap or Returns Heatmap is a dynamic visualization that helps intuitively assess the performance of your portfolio and individual holdings.
The Performance Heatmap is available at the holding level and is accessible to all Parqet users. It can also be found in the Analysis Dashboard under the "Returns" tab. There, Parqet subscribers have access to the heatmap for their entire portfolio including an overview and the ability to set various filters.
How the Heatmap Works
The Performance Heatmap displays performance on a monthly, quarterly, and annual basis in tabular form. The individual cells are marked with a continuous color scale, making the performance of individual periods very quick and intuitive to read. The darker the color coding, the stronger the performance swing in the area under consideration.
Unlike the Performance Chart, the heatmap expresses returns for a specific time period. For example, a performance of 3.35% in March 2024 was achieved exactly in this period from March 1st to March 31st. The Performance Chart, on the other hand, expresses performance at any given time relative to the beginning of the interval.
So the heatmap is like a Performance Chart for each individual month.
To analyze performance in a specific period more closely, simply click on the desired time period.
In the detail view, in addition to the start and end values in absolute numbers, the relative performance and the number of activities during this period are also displayed.
Parqet subscribers also have the option to do a deep dive by clicking on the selected time period. The portfolio will then automatically open for that observation period.
Filter Options in the Analysis Dashboard
On the Analysis page under the "Returns" tab, subscribers can view the Performance Heatmap for the entire portfolio. It is also possible to filter the heatmap by asset type (securities, crypto, cash) or by holding.
Simply select the desired holding in the drop-down menu: As soon as a holding is selected, a green checkmark appears. Of course, multiple holdings can also be selected.
In addition to the heatmap, you will also find a performance display as a bar chart in the Analysis Dashboard.
How Performance is Calculated in the Heatmap and the Adjusted Start Value
The Performance Heatmap shows the performance achieved during the respective time period. The heatmap provides an overview of the period from the first to the last day of the month or quarter.
The start value is the value at the beginning of the interval. The adjusted start value is adjusted for deposits and withdrawals during the interval so that these do not distort the performance. The performance results from the comparison between the adjusted start value and the end value.
The performance also includes realized gains and dividends from the corresponding period. The heatmap is most meaningful when a cash account is included.
Calculation Example
On January 1, 2023, a portfolio has an initial value of €9,977 and on January 31 an end value of €10,770. We use the terms "start value" and "end value" to describe the value change in January. The difference between both values yields the absolute value change, from which the performance can be calculated.Now let's assume €100,000 was invested in January. At the end of the interval, the value was €110,770. Since €100k of the value increase came from a deposit, this must not be included in the performance calculation. Thus, we calculate the adjusted start value, also currently called "entry value for interval" or "purchase value", whose difference from the end value yields the performance.
We Look Forward to Your Feedback!
Your feedback is extremely important to us. If you have questions about the heatmap or suggestions for additional tools, we'd love to hear from you — via email at support@parqet.com, in the corresponding community post, or in our feature voting tool.
Frequently Asked Questions
Do the filters on the Dashboard page, such as flexible time periods, also affect the Returns Heatmap?
The filters on the Dashboard page generally do not affect the Performance Heatmap. It is controlled by the specific filters on the Analysis page. One exception is the portfolio selection in the Portfolio Overview, which also affects the heatmap.
Why does the value in the Performance Heatmap differ from the performance value in the Dashboard, even though the same time period is selected?
If the Dashboard time period is set to exactly one time period from the heatmap, the performance may differ in some cases. The reason for this is that realized gains and dividends are also included in the heatmap.
In the Performance Chart in the Dashboard, the performance at the end of the selected time period is identical to the Performance Heatmap if the cash account function or the checkbox for realized gains and dividends is activated.
How is the adjusted start value calculated?
The adjusted start value adjusts the start value for all inflows and outflows made during the period, such as purchases and sales (see calculation example above).
Who can use the Parqet Performance Heatmap?
At the holding level, the heatmap is available to all users. In the Analysis tab, the heatmap can only be used by Parqet subscribers. The heatmap is currently only available in the web app.
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