> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincept.in/llms.txt
> Use this file to discover all available pages before exploring further.

# Calculate Parametric VaR

> Calculates Value at Risk using the parametric (variance-covariance) method. This assumes normal distribution of returns and estimates VaR using portfolio volatility and confidence level. Best suited for portfolios with normally distributed returns and linear positions. Use when you have volatility estimates and want fast calculation without historical data. [Tier: PRO, Credits: 5]



## OpenAPI

````yaml api-specs/risk.json post /quantlib/risk/var/parametric
openapi: 3.1.0
info:
  title: FinceptQuantLib API - Risk Module
  description: >-
    Professional-grade risk management endpoints including Value at Risk (VaR),
    stress testing, copulas, extreme value theory (EVT), XVA calculations,
    sensitivities, and portfolio hedging. Part of the Pro Tier (5 credits per
    request).
  version: 3.0.0
  contact:
    name: Fincept API Support
    url: https://fincept.in
    email: support@fincept.in
servers:
  - url: https://api.fincept.in
    description: Fincept API Production Server
security:
  - APIKeyHeader: []
tags:
  - name: quantlib-risk
    description: Risk Management Module - Pro Tier (5 credits/request)
    x-displayName: Risk
paths:
  /quantlib/risk/var/parametric:
    post:
      tags:
        - quantlib-risk
      summary: Calculate Parametric VaR
      description: >-
        Calculates Value at Risk using the parametric (variance-covariance)
        method. This assumes normal distribution of returns and estimates VaR
        using portfolio volatility and confidence level. Best suited for
        portfolios with normally distributed returns and linear positions. Use
        when you have volatility estimates and want fast calculation without
        historical data. [Tier: PRO, Credits: 5]
      operationId: parametric_var
      requestBody:
        required: true
        content:
          application/json:
            schema:
              type: object
              required:
                - portfolio_value
                - volatility
              properties:
                portfolio_value:
                  type: number
                  description: Total portfolio value in currency units
                  example: 1000000
                volatility:
                  type: number
                  description: >-
                    Annualized volatility (standard deviation) as a decimal
                    (e.g., 0.20 for 20%)
                  example: 0.2
                  minimum: 0
                confidence:
                  type: number
                  description: Confidence level for VaR calculation (e.g., 0.99 for 99%)
                  example: 0.99
                  default: 0.99
                  minimum: 0.5
                  maximum: 0.999
                horizon:
                  type: integer
                  description: Time horizon in days for VaR calculation
                  example: 1
                  default: 1
                  minimum: 1
            example:
              portfolio_value: 10000000
              volatility: 0.18
              confidence: 0.95
              horizon: 10
      responses:
        '200':
          description: Successful VaR calculation
          content:
            application/json:
              schema:
                type: object
                properties:
                  success:
                    type: boolean
                    example: true
                  data:
                    type: object
                    properties:
                      var:
                        type: number
                        description: Value at Risk amount in currency units
                        example: 935812.46
                      confidence:
                        type: number
                        example: 0.95
                      horizon:
                        type: integer
                        example: 10
              example:
                success: true
                data:
                  var: 935812.46
                  confidence: 0.95
                  horizon: 10
        '401':
          $ref: '#/components/responses/UnauthorizedError'
        '402':
          $ref: '#/components/responses/InsufficientCreditsError'
        '422':
          $ref: '#/components/responses/ValidationError'
components:
  responses:
    UnauthorizedError:
      description: Authentication information is missing or invalid
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: Invalid API key
    InsufficientCreditsError:
      description: Insufficient API credits for this request
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: string
                example: Insufficient credits. This endpoint requires 5 credits.
    ValidationError:
      description: Request validation error
      content:
        application/json:
          schema:
            type: object
            properties:
              detail:
                type: array
                items:
                  type: object
                  properties:
                    loc:
                      type: array
                      items:
                        type: string
                    msg:
                      type: string
                    type:
                      type: string
  securitySchemes:
    APIKeyHeader:
      type: apiKey
      in: header
      name: X-API-Key
      description: >-
        API key for authentication. Get your key at
        https://api.fincept.in/auth/register

````