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It seems very disingenuous to say "you don't even have to open a textbook" and then link to a quant finance blog doing partial derivatives. That's well beyond t
by ahepp 6y ago
It seems very disingenuous to say "you don't even have to open a textbook" and then link to a quant finance blog doing partial derivatives. That's well beyond the level of math that the average person would consider self-evident.
I don't know anything about this blog^[0] , but I wanted to find some charts comparing a well known risk parity fund to more general portfiolios. Trusting that they're accurate, it looks like risk parity performed great in 2008, but hasn't beat the market over longer periods of time. Even measuring from 2007 to late 2020, it appears a 60/40 bond fund has beat it substantially.
Thus I'm not really sure what grounds there is to say risk parity beats the market. Certainly not by all measurements. I'm not a huge financial guy though, maybe I'm misunderstanding something?
[0] https://www.evidenceinvestor.com/the-all-weather-portfolio-explained/ https://www.evidenceinvestor.com/the-all-weather-portfolio-e...
- fractionalhare 6y ago> It seems very disingenuous to say "you don't even have to open a textbook" and then link to a quant finance blog doing partial derivatives. Sorry, I meant you don't need to find a book, you can find the info online.