Performance chart of securities account vs. whole portfolio

English
1

I’m pretty new to PP, so sorry if this is noob question.

I was just messing around with the performance chart to see what it could show, and apparently there is the ability to graph the performance of just a securities account. Selecting this option shows a very different graph than selecting the whole portfolio. Mind, I only have one securities account in the portfolio. The thing is, is that I have no idea what this graph is showing. Could someone please explain the underlying difference between graphing just a securities account and graphing the entire portfolio when I only have one securities account in the portfolio?

Thanks.

2

The entire portfolio also comprises the non-securities (i.e. money) accounts. Does that explain the difference?

3

So essentially, because my cash has basically been earning nothing, the entire portfolio graph shows a slower but more steady return, i.e. a flatter chart? And the securities graph has steeper losses and gains because it’s not taking into account the cash that’s just sitting there?

4

Yes, that’s it. If there is (a substantial amount of) cash, there is “cash drag” which reduces the volatility, for better or worse.