How Do Gamma, Tau, and Eta Work Together to Form the Sigma Score™?

✅ The Sigma Score™ is a complete portfolio health signal —

a single number from 0–100 that reflects

how structurally sound your portfolio is.

It’s made up of three core traits:

Gamma = Stability

Tau = Resilience

Eta = Efficiency

Each one measures a different kind of strength.

Together, they form a unified diagnostic that tells you:

Is your portfolio stable? Can it recover? Is it intelligent?

You don’t just see returns.
You see the truth beneath them.

📉 The Problem: What Most People Get Wrong

Wall Street gives us performance reports,

not structural diagnostics.
You get data — but not meaning.

Numbers — but not insight.

And here’s the deeper truth:

Two portfolios can have the same return…
but wildly different risk, recovery, and efficiency profiles.

Most systems ignore this.
They flatten complexity into a few shallow metrics —

and leave blind spots everywhere.

So when pressure hits,
you discover what your portfolio’s really made of…

the hard way.

🔁 The Belief Shift

Old Paradigm: “Return is all that matters.”


New Paradigm: “True strength is made of three forces — and return is the byproduct.”

“You don’t need more performance.
You need structural clarity —

so your performance can survive.”

🧱 The Structural Explanation

The Sigma Score™ is built from three compounded scores —

each representing a dimension of structural integrity:

⚖️ Gamma = STABILITY

Can your portfolio stay upright in turbulence?

  • Measures: Volatility, Beta, Max Drawdown, Recovery Burden, Sharpe, Sortino

  • Think of it as: “How much does this shake when the storm hits?”

🔁 Tau = RESILIENCE

Can your portfolio recover after a hit?

  • Measures: Calmar, Information Ratio, Recovery Time, Risk-Adjusted Return

  • Think of it as: “How fast and fully can this bounce back?”

⚙️ Eta = EFFICIENCY

Is your portfolio converting risk into return intelligently?

  • Measures: Alpha, Omega, Treynor, Return Consistency

  • Think of it as: “Is this working smart, or just working hard?”

These three are weighted, synthesized, and normalized into one clear signal:
→ The Sigma Score™ (0–100)

✅ High Gamma = Calm under pressure
✅ High Tau = Reliable recovery
✅ High Eta = Smart, strategic returns
✅ High Sigma = All three in harmony

You’re not guessing anymore.
You’re measuring what matters.

📊 Why It Matters

Without this 3-part lens:

  • You’ll optimize for the wrong variable (like returns or volatility)

  • You’ll miss hidden fragility

  • You’ll stay reactive — not prepared

With Gamma, Tau, and Eta working together:

  • You get a true portfolio fingerprint

  • You identify where the weakness lives

  • You gain the power to evolve your structure — not just hope for better results

“I used to think I had a strong portfolio.
Then I saw my Gamma and Tau scores —

and realized I had no foundation.”

👥 Who This Is For

→ For investors who want real control:
If you’re tired of shallow reports and want to see what’s really happening under the hood —

this is your structural truth.

→ For fiduciary advisors who want principled clarity:
If you need a simple, powerful way to show clients that their portfolio isn’t just performing —

it’s built to endure — this is your edge.

🛠 When You’re Ready, Here’s How I Can Help.

🧠 Further Insights to Strengthen Your Clarity

Ready to go deeper?

These aligned insights build on

what you just uncovered.

  • What Is the Sigma Score™ and What Does It Measure?

  • What Are the 12 Dimensions of Risk in a Portfolio?

  • Why Structure Matters More Than Strategy

  • What’s the Difference Between Risk and Volatility?

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