Portfolio Analysis-Performance Alignment Matrix

The Portfolio Analysis-Performance Alignment Matrix is a 2x2 matrix used to assess the performance of a portfolio of investments. It helps to identify which investments are performing well and which are underperforming, and can be used to make decisions about which investments should be kept and which should be sold.

At a very high level, the Portfolio Analysis-Performance Alignment Matrix is used in the context of business, finance, marketing.

Portfolio Analysis-Performance Alignment Matrix quadrant descriptions, including examples
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What is the Portfolio Analysis-Performance Alignment Matrix?

A visual explanation is shown in the image above. The Portfolio Analysis-Performance Alignment Matrix can be described as a matrix with the following quadrants:

  1. High Performance-High Alignment: Investments that are performing well and are in line with the portfolio’s goals (e.g. an environmentally friendly company that is performing well)
  2. High Performance-Low Alignment: Investments that are performing well but are not in line with the portfolio’s goals (e.g. a company that is performing well but is not environmentally friendly)
  3. Low Performance-High Alignment: Investments that are not performing well but are in line with the portfolio’s goals (e.g. an environmentally friendly company that is not performing well)
  4. Low Performance-Low Alignment: Investments that are not performing well and are not in line with the portfolio’s goals (e.g. a company that is not performing well and is not environmentally friendly)

What is the purpose of the Portfolio Analysis-Performance Alignment Matrix?

The Portfolio Analysis-Performance Alignment Matrix is a 2x2 matrix used to assess the performance of a portfolio of investments. It helps to identify which investments are performing well and which are underperforming, and can be used to make decisions about which investments should be kept and which should be sold.

The matrix is divided into four quadrants. The top-left quadrant is labeled “High Performance-High Alignment” and includes investments that are performing well and are in line with the portfolio’s goals. The top-right quadrant is labeled “High Performance-Low Alignment” and includes investments that are performing well but are not in line with the portfolio’s goals. The bottom-left quadrant is labeled “Low Performance-High Alignment” and includes investments that are not performing well but are in line with the portfolio’s goals. The bottom-right quadrant is labeled “Low Performance-Low Alignment” and includes investments that are not performing well and are not in line with the portfolio’s goals.

For example, if the portfolio’s goal is to invest in companies that are environmentally friendly, an investment in a company that is performing well but is not environmentally friendly would be placed in the “High Performance-Low Alignment” quadrant.

The Portfolio Analysis-Performance Alignment Matrix is a useful tool for assessing a portfolio of investments and making decisions about which investments should be kept and which should be sold.


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What templates are related to Portfolio Analysis-Performance Alignment Matrix?

The following templates can also be categorized as business, finance, marketing and are therefore related to Portfolio Analysis-Performance Alignment Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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