📚 Portfolio Optimization: Risk Parity

Quantitative Researcher | Mustafa MAJJI

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📚 Project Overview

In this project, we present the Risk Budgeting method for portfolio optimization. The objective of this method is to allocate asset weights so that each asset achieves a specified contribution to the portfolio’s overall risk.

Specifically:

• Equally Weighted Portfolio (EWP): Assets have the same weight but contribute differently to the portfolio’s total volatility.
• Risk Parity Portfolio (RPP): Assets contribute equally to the portfolio’s total volatility, although their weights may vary.

🚀 Repository Structure

• Images : The folder contains images used on the notebook.
• Theory: A PDF document providing a detailed explanation of the theory behind the model.
• Risk Parity.ipynb : a notebook that details the risk parity method and compare it to the Equaly weighted portfolio.

📪 Contact

For any information, feedback or questions, please contact me