# Can we get the portfolio size approximation from the PnL? [closed]

Im wondering if we can get the portfolio size approximation, if we have the volatility and -/+ pnl of the portfolio ? Is there a method or a formula ? Example the annual volatility of 3% and daily PnL in range of +/- 10000€ ? Thank you

## closed as off-topic by skoestlmeier, Bob Jansen♦Apr 30 at 13:26

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• Convert the annual volatility to daily and then it becomes fairly easy. – Alex C Apr 30 at 14:02
• Once we have the daily vol, how to go from me it to the find the portfolio size? Please help me it’s quite urgent – Gogo78 Apr 30 at 14:09
• 3% a year is 0.03/sqrt(252) = 0.00189 per day. If 10000 EUR is twice the daily standard deviation then the portfolio size is 5000/0.00189 = 2.6 million EUR. Caution: this is very approximate, could easily be off by a factor of 2 or more. – Alex C Apr 30 at 15:02
• Oh thank you, this can work if the pnl is a range +/- 10000 ? – Gogo78 Apr 30 at 15:09
• Your lack of knowedge is dangerous, please study these things before you get in trouble. – Alex C Apr 30 at 15:14