🧠 Portfolio Optimization: Hierarchical risk parity

Quantitative Researcher | Mustafa MAJJI

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📚 Project Overview

In this project, we explore the Hierarchical Risk Parity (HRP) method, a sophisticated portfolio optimization framework designed to achieve balanced risk contributions across a portfolio while minimizing concentration risk. The core innovation of HRP lies in its hierarchical approach to asset allocation, which enhances diversification by grouping assets based on their similarity before applying risk parity principles.

🚀 Repository Structure

• Images: Contains all images used in the notebook.

• Theory: A PDF document providing a detailed explanation of the theory behind the model.

• HRP_portfolio optimization.ipynb: A Jupyter Notebook that explains the method and demonstrates the optimization process.

📪 Contact

For any information, feedback or questions, please contact me