Risk Parity Asset Allocation
May 7, 2021
This article is a primer into the methodology we use for the Portfolio Risk Parity report, which is a part of our Quantpedia Pro offering. We explain three risk parity methodologies — Naive Risk Parity (inverse volatility weighted), Equal Risk Contribution and Maximum Diversification. Quantpedia Pro allows the design of model risk parity portfolios built not just from the passive market factors (commodities, equities, fixed income, etc.) but also from systematic trading strategies and uploaded user’s equity curves.
