In Fincanva, portfolios and simulations serve different but complementary roles. A portfolio represents your investment strategy—what you plan to do—while a simulation tests that strategy using historical data to show how it would have performed.
Here’s a clear comparison:
| Aspect | Portfolio | Simulation / backtest |
|---|---|---|
| Purpose | Your actual investment strategy | A test of that strategy using past market data |
| Time Focus | Future-oriented | Past-focused |
| Status | Live and editable | Static result once computed |
| Functionality | Guides current and future decisions | Helps evaluate and refine the portfolio before use |
| Analogy | The blueprint for your investments | A time machine to see how the plan would’ve worked |
Think of your portfolio as the blueprint—a live plan you can design and modify. A simulation is the time machine that shows how your plan would have performed under real historical conditions. Together, they let you build smarter strategies and make data-driven decisions with confidence.
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