™A $10,000 position moving 10% changes by $1,000; compounding helps place that movement in the context of the wider portfolio.
Risk & Portfolio
Compounding
Growth that earns additional growth on prior gains or reinvested income over time.
Plain-English context
Why it matters
This concept helps describe how one position or behavior can affect the resilience of an entire portfolio.
Assuming Compounding removes risk rather than describing or redistributing part of it.
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