Calculate the Weight of Fe and the Weight Chegg

Instantly calculate the weight of FE (FirstEnergy) and the weight of CHGG (Chegg) in your investment portfolio. Determine accurate asset allocation percentages for better risk management.

Portfolio Allocation Tool

What is Portfolio Weight Calculation?

Calculating the weight of specific assets, such as FirstEnergy (FE) and Chegg (CHGG), is a fundamental practice in portfolio management. Portfolio weight refers to the percentage of an investment portfolio that a specific holding represents. It is calculated by dividing the current market value of a single asset by the total market value of the entire portfolio.

Investors, from retail traders to institutional fund managers, must calculate the weight of FE and the weight of CHGG to ensure their exposure aligns with their risk tolerance. If a single stock's weight becomes too high, the portfolio becomes "overweight" in that asset, increasing concentration risk. Conversely, if the weight is too low, the investor may not benefit significantly from the asset's growth.

This calculation is particularly important when rebalancing. For example, if FE stock appreciates significantly while CHGG declines, the weight of FE will naturally increase, potentially requiring you to sell some FE shares to maintain your desired allocation strategy.

Weight Calculation Formula and Mathematical Explanation

The mathematics behind calculating asset weight is straightforward but crucial for accuracy. The formula determines the proportional value of each holding relative to the whole.

The General Formula

Weight (%) = (Market Value of Asset / Total Portfolio Value) × 100

Where:

• Market Value of Asset = Number of Shares × Current Price per Share
• Total Portfolio Value = Sum of Market Values of All Assets (FE + CHGG + Others)

Table 1: Key Variables in Portfolio Weight Logic

Variable	Meaning	Unit	Typical Range
Share Quantity	Total number of units owned	Shares	1 to 10,000+
Current Price	Live market trading price	USD ($)	$0.01 to $5,000+
Market Value	Total liquidation value of position	USD ($)	Variable
Weight	Allocation percentage	Percent (%)	0% to 100%

Practical Examples: Calculating FE and CHGG Weights

Example 1: A Focused Tech & Utility Portfolio

Imagine an investor, Sarah, holds only two stocks: FirstEnergy (FE) for stability and Chegg (CHGG) for growth potential.

• FE Position: 200 shares at $40.00 = $8,000
• CHGG Position: 500 shares at $10.00 = $5,000
• Total Portfolio Value: $8,000 + $5,000 = $13,000

Calculation:
Weight of FE = ($8,000 / $13,000) × 100 = 61.54%
Weight of CHGG = ($5,000 / $13,000) × 100 = 38.46%

Interpretation: Sarah is heavily weighted towards utilities (FE). If the utility sector drops, over 60% of her portfolio is affected.

Example 2: A Diversified Portfolio

Mark has a larger portfolio with other assets included.

• FE Position: 100 shares at $42.00 = $4,200
• CHGG Position: 100 shares at $9.00 = $900
• Other Assets (Cash/Bonds): $45,000
• Total Portfolio Value: $4,200 + $900 + $45,000 = $50,100

Calculation:
Weight of FE = ($4,200 / $50,100) × 100 = 8.38%
Weight of CHGG = ($900 / $50,100) × 100 = 1.80%

Interpretation: Mark has a conservative allocation. The weight of CHGG is less than 2%, meaning even a total collapse of Chegg stock would have a minimal impact on his total wealth.

How to Use This Portfolio Weight Calculator

1. Enter FE Shares & Price: Input the total number of FirstEnergy shares you own and the current market price.
2. Enter CHGG Shares & Price: Input the total number of Chegg shares you own and the current market price.
3. Add Other Assets (Optional): If these stocks are part of a larger portfolio, enter the total value of your other holdings (cash, bonds, ETFs) in the "Value of Other Portfolio Assets" field. This ensures the percentages reflect your true total portfolio.
4. Review the Chart: The dynamic pie chart will visualize your allocation. A large slice for one color indicates a high concentration in that asset.
5. Analyze the Percentages: Look at the "Weight of FE" and "Weight of CHGG" results. Use these figures to decide if you need to buy or sell to reach your target allocation.

Key Factors That Affect Portfolio Weight Results

Several dynamic factors influence the weight of FE and the weight of CHGG in your portfolio daily. Understanding these helps in making informed rebalancing decisions.

1. Stock Price Volatility

If the price of FE rises while CHGG stays flat, the weight of FE increases mathematically without you buying any new shares. This is called "portfolio drift."

2. Dividend Reinvestment

FirstEnergy is a utility company that typically pays dividends. If you automatically reinvest these dividends (DRIP), your share count (Qty) increases, thereby increasing the weight of FE over time compared to non-dividend paying stocks.

3. Capital Injections

Adding cash to your portfolio (increasing "Other Assets") dilutes the weight of existing stock holdings. For instance, depositing $10,000 cash will instantly lower the percentage weight of both FE and CHGG.

4. Sector Rotation

Market cycles often favor utilities (FE) during recessions and tech/education (CHGG) during growth phases. These macro trends cause divergence in stock prices, shifting your weights significantly.

5. Corporate Actions

Stock splits or reverse splits change the number of shares and price per share, though theoretically, the market value remains the same. However, volatility surrounding these events can impact weight.

6. Inflation and Fees

While not changing the nominal weight directly, inflation erodes the real value of the "Other Assets" (cash) portion. High management fees deducted from your account also reduce your Total Portfolio Value, slightly altering the relative weights of your stock positions.

Frequently Asked Questions (FAQ)

What is an ideal weight for a single stock like FE?

Most financial advisors suggest capping a single stock's weight at 5% to 10% of your total portfolio to mitigate specific stock risk. Since FE is a utility, it is generally considered lower risk, but concentration limits still apply.

Why is calculating the weight of Chegg (CHGG) important?

Chegg is in the education technology sector, which can be more volatile than utilities. Monitoring its weight ensures you aren't overexposed to high-volatility assets that could swing your portfolio balance drastically.

Does this calculator account for margin?

This calculator uses the gross market value of assets. If you are using margin, your equity weight would differ from your asset weight. For basic allocation checks, using gross asset value is standard.

How often should I calculate these weights?

It is recommended to check your portfolio weights quarterly or annually. Rebalancing too frequently can lead to excessive tax events and transaction fees.

What happens if the Total Portfolio Value input is left empty?

If the "Other Assets" field is 0, the calculator assumes your entire portfolio consists only of FE and CHGG. The weights will be calculated relative to the sum of just those two positions.

Can I use this for other stocks besides FE and CHGG?

Yes. While the labels say FE and CHGG, the math works for any two assets. Simply treat "FE" as Asset A and "CHGG" as Asset B.

Does the weight change if I sell shares?

Yes. Selling shares reduces the Market Value of that asset. This decreases its specific weight and mathematically increases the relative weights of all other assets in the portfolio.

What is the difference between equal weighting and capitalization weighting?

Equal weighting would mean aiming for 50% FE and 50% CHGG. Capitalization weighting (which this calculator determines) shows you the actual current value based on market price and shares held.

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' + data[i].label + ' (' + data[i].value.toFixed(1) + '%)

'; } } document.getElementById("chartLegend").innerHTML = legendHTML; } // UTILITIES function resetCalculator() { document.getElementById("qtyFE").value = "100"; document.getElementById("priceFE").value = "41.25"; document.getElementById("qtyCHGG").value = "200"; document.getElementById("priceCHGG").value = "8.50"; document.getElementById("otherAssets").value = "0"; calculatePortfolio(); } function copyResults() { var feW = document.getElementById("res-feWeight").innerText; var chggW = document.getElementById("res-chggWeight").innerText; var total = document.getElementById("res-totalValue").innerText; var text = "Portfolio Weight Summary:\n"; text += "Total Value: " + total + "\n"; text += "FE Weight: " + feW + "\n"; text += "CHGG Weight: " + chggW + "\n"; var dummy = document.createElement("textarea"); document.body.appendChild(dummy); dummy.value = text; dummy.select(); document.execCommand("copy"); document.body.removeChild(dummy); var btn = document.querySelector(".btn-copy"); var originalText = btn.innerText; btn.innerText = "Copied!"; setTimeout(function(){ btn.innerText = originalText; }, 2000); } // Initialize on load window.onload = function() { calculatePortfolio(); };