# Value at Risk Sensitivities

Values at risk sensitivities (or incremental value at risk) are similar to the marginal risk attribution as described in Risk Budgets. While a marginal risk budget measures the change in total value at risk attributed to an increased exposure in a portfolio component, incremental value at risk measures the impact of a reallocation across all asset exposures. 

In practice, a portfolio manager with a 60% allocation in equities and a 40% allocation in fixed income may wish to evaluate a scenario where 5% of equity funds are reallocated to fixed income. The manager may then review the resultant change in total value at risk as part of a risk sensitivity analysis process. A negative change indicates that the reallocation is risk-reducing relative to the current allocation. A positive change indicates that the reallocation increases risk relative to the current allocation.

![Incremental Value at Risk](/files/-MF1OFmivv8bhX_kbqSm)

For each asset’s increment iteration, we reevaluate the portfolio’s value at risk measure against the initial portfolio value at risk.

![Value at Risk Sensitivity in the Windham Portfolio Advisor](/files/-MF1OqUhmrR-HnCFl9fq)

{% hint style="info" %}
For these risk budget measures, the Windham Portfolio Advisor also provides insights to the [within-horizon](/exposure-to-loss/value-at-risk.md#within-horizon-value-at-risk) analysis across all instruments.
{% endhint %}


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