FTB-C000267 / Statistical method

Concentration Measure

Concentration Measure quantifies how much a total is dominated by relatively few members of a population.

Also known asconcentration metric

Definitions

In plain terms

Examples include top-N shares and squared-share indexes such as HHI.

Technical

A measure must declare the share basis, eligible population, normalization, sign treatment, time, and missing-member policy.

Scope

Different concentration measures can rank the same portfolios differently.

Examples

  • A Fintech Builder lesson can compute or identify Concentration Measure only after declaring its inputs, timing, and edge-case rules.

Common misconceptions

  • Different concentration measures can rank the same portfolios differently.

Concept relationships

Where this concept is used

Evidence and governance

  1. Herfindahl-Hirschman Index U.S. Department of Justice · official standard

    Supports: preferred label, short definition, technical definition

    Limits: Antitrust concentration thresholds do not automatically apply to index-constituent concentration; this glossary reuses only the mathematics.

Reviewed by
fintech-builder-batch-005
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.