The Adaptive Asset Allocation (AAA) portfolio combines two different tactical approaches (momentum and minimum variance) into one algorithm. The intention of this portfolio recipe is to optimize ...

The 60/40 portfolio (60% stocks/40% bonds) is the most enduring asset allocation framework in modern investing, and it has only two key objectives: growth and diversification. Two critical assumptions ...

Understanding the correlation between various asset classes is crucial for investors aiming to build a diversified investment portfolio. Correlation measures the statistical relationship between the ...

As global financial markets become increasingly interconnected, accurately modelling correlations between assets is essential. Traditional models often assume static correlations, which fail to ...

For most retail investors, the word "equity" instinctively signals higher returns, and higher risk. It is commonly assumed that increasing the equity allocation in a portfolio proportionally increases ...