Risk Parity Dashboard

Equal Risk Contribution Portfolio

Allocate capital so each asset contributes equally to total portfolio volatility. Compare ERC weights against naive equal-weight, inspect diversification ratio, and compute leverage required to hit a target volatility.

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Asset Universe (comma-separated tickers)

Target Annualised Vol

Run

RP Portfolio Vol

—

annualised, unlevered

EW Portfolio Vol

—

annualised, unlevered

Diversification Ratio

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risk parity portfolio

Leverage for Target Vol

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risk parity portfolio

Asset Count

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in universe

Risk Parity Weights

ERC allocation — each asset equates ~1/N risk

Equal Weight Comparison

Naive 1/N allocation for benchmark comparison

Risk Contributions (% of Total Portfolio Variance) Near-Equal by Construction

Diversification Ratio Gauge

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Risk Parity DR —

Equal Weight DR —

Undiversified (DR = 1) 1.00

The Diversification Ratio = weighted-average individual vol / portfolio vol. Risk Parity maximises the DR by construction. A DR above 1.30 indicates strong cross-asset diversification benefit.

Rebalancing Trades — EW → Risk Parity weight delta (notional)

Ticker	EW Weight	RP Weight	Delta	Action

Leverage Note

Computing leverage requirements...

Methodology: Equal Risk Contribution (Maillard et al. 2010) via gradient-ascent convergence on risk weights. Covariance source: — (sample covariance of daily log returns, annualised x252; no typed-in vols or correlations — if the history is missing the page says so instead of computing). Diversification Ratio = weighted-vol-sum / portfolio-vol (Choueifaty & Coignard 2008). hash: —