---
title: "Effective Number of Bets"
method: POST
path: "/portfolios/analysis/effective-number-of-bets"
tags: ["Portfolio Analysis"]
---

# Effective Number of Bets

`POST /portfolios/analysis/effective-number-of-bets`

Compute the effective number of bets of a portfolio.

References
* [Meucci, Attilio and Santangelo, Alberto and Deguest, Romain, Risk Budgeting and Diversification Based on Optimized Uncorrelated Factors (November 10, 2015)](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2276632)

## Request body

- object
  - `assets` integer, required — The number of assets
  - `assetsCovarianceMatrix` array[], required — assetsCovarianceMatrix[i][j] is the covariance between the asset i and the asset j
    - number[]
  - `factorsComputationMethod` 'principalComponentAnalysis' | 'exactMinimumLinearTorsion' | 'approximateMinimumLinearTorsion' — The method used to compute the uncorrelated risk factors from the asset covariance matrix
  - `portfolios` object[], required
    - `assetsWeights` number[], required — assetsWeights[i] is the weight of the asset i in the portfolio, in percentage

## Response `200`

OK

- object
  - `portfolios` object[], required
    - `portfolioEffectiveNumberOfBets` number, required — The effective number of bets of the portfolio

---

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