Optimal allocation vs historical allocation
JR
Jordan RodriguezSeptember 02, 25 | Posted in General
Is there a reason why the optimal allocation numbers never coincide with the historical allocation numbers. I would have assumed they would be the same as the percentages at the end of the historical allocation chart. Is this wrong?
For example, for one of my portfolios, it tells me optimal allocation for TLT is 37% but in the allocation over time chart, TLT never has more than 5% allocated.
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DS
Dmitry ShevchenkoSeptember 06, 25
Hi Jordan, yes, that’s correct. The allocation timeline chart should show the optimal weights, at least in the beginning before they drift. I just checked a couple of portfolios, and it seems to be working as expected. What optimization settings are you using?
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