Portfolio Construction Strategies
3 strategies available
Sign In
Equal Weight Portfolio
Simple
Allocates equal capital to all tickers in the portfolio with periodic rebalancing to maintain equal weights.
Equal weight portfolio strategy: 1. Initial Allocation: Divides capital equally among all selected tickers 2. Periodic Rebalancing: At each rebalance date, sells/buys to restore equal weights 3. Drift Management: Between rebalances, positions drift based on price movements 4. Sector Caps: …
Best for: Investors seeking diversified exposure without market-cap bias. Works well for those who prefer a disciplined, rules-based approach. Best with low-cost brokerages to minimize rebalancing costs.
Techniques Used
Equal weighting
Periodic rebalancing
Sector caps
Sign In
Volatility Targeted Portfolio
Moderate
Scales position sizes inversely to volatility to achieve a target portfolio volatility. Higher volatility assets get smaller positions.
Volatility-targeted portfolio strategy: 1. Calculate Volatility: Measure rolling volatility (standard deviation of returns) for each asset 2. Inverse Weighting: Assets with lower volatility get larger positions (inverse volatility weighting) 3. Normalize Weights: Scale weights so they sum to 100% (or …
Best for: Risk-aware investors seeking steady returns with controlled volatility. Good for those who want a more sophisticated approach than equal weighting. Works well in volatile market …
Techniques Used
Inverse volatility weighting
Volatility targeting
Risk parity lite
Sign In
Black-Litterman
Advanced
Bayesian expected returns with regime-aware risk budgeting.
Techniques Used
Black-Litterman
Robust optimization
Risk budgeting