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Since there has been much discussion of the appropriateness of cognate areas on MathOverflow, I think this is a good opportunity to discuss the appropriateness of financial mathematics. This particular question seems softish but it looks like it has some mathematical content, I am not enough of an expert in such matters to judge.
I'd say it is pretty ok... (I fear, though, that if someone comes up with a mathematically significant answer it will be of not a lot of use to the questioner!)
There is a comment in the question saying «I doubt many hear will even understand the subject concerned». I hope this is not taken as grounds for closing: that criterion would leave us with very few questions!
I think there is nothing wrong with financial mathematics, as long as it is the same level of the rest of mathematics here. This does not seem to be the case.
Moreover, if I understand correctly, the OP is asking for a definition of a financial term. I'd expect instead that for a financial question to be suitable, it had to be rephrased in terms understandable to mathematicians. I'm not competent to judge whether the jargon used by the OP is standard or not in financial mathematics (I guess "portfolio" is, but I'd be surprised if there existed a single notion of "portfolio distance" without further qualifications).
I agree with cfranc.
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