Interactive portfolio model

Diversification Model

Combine two risky assets, then watch their correlated returns unfold month by month. The theoretical opportunity curve and the realized portfolio path update together.

σ²p = w²σ²A + (1−w)²σ²B + 2w(1−w)ρσAσB

Current month

0 / 120

Theoretical volatility

0.00%

Realized volatility

—

Portfolio value

$100.00

Minimum possible

0.00%

Cumulative value through time

Blue: Asset A. Orange: Asset B. Green: your portfolio.

Portfolio opportunity curve

The dashed line marks your current weight in Asset A.

Ready: Press Start to generate a correlated return history.