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Risk-Parity Portfolio test
Performance
Return for Risk
Dividends
Drawdowns
Volatility
Diversification

Asset Allocation


S&P 500 Index

Performance

Performance Chart

The chart shows the growth of an initial investment of $10,000 in Risk-Parity Portfolio test, comparing it to the performance of the S&P 500 index or another benchmark. All prices have been adjusted for splits and dividends. The portfolio is rebalanced Every year.


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The earliest data available for this chart is Jul 26, 2012, corresponding to the inception date of BTC-USD

Returns By Period

As of Apr 11, 2026, the Risk-Parity Portfolio test returned -0.79% Year-To-Date and 25.15% of annualized return in the last 10 years.


1D1MYTD6M1Y3Y*5Y*10Y*
Benchmark
S&P 500 Index
-0.11%0.61%-0.42%4.03%29.40%18.38%10.55%12.70%
Portfolio
Risk-Parity Portfolio test
-0.06%-0.60%-0.79%-0.22%21.08%20.23%10.57%25.15%
SPYM
State Street SPDR Portfolio S&P 500 ETF
-0.07%0.71%-0.08%4.62%31.09%19.99%12.14%14.68%
QQQ
Invesco QQQ ETF
0.14%0.68%-0.40%3.92%37.62%25.34%13.31%19.62%
BTC-USD
Bitcoin
1.48%3.78%-16.73%-35.51%-8.41%34.08%3.97%67.16%
TLT
iShares 20+ Year Treasury Bond ETF
-0.24%-0.35%0.34%-2.42%4.62%-3.00%-5.82%-1.38%
IEI
iShares 3-7 Year Treasury Bond ETF
-0.08%-0.27%0.11%0.66%4.41%3.38%0.47%1.35%
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF
-0.26%0.45%0.22%0.30%8.54%4.30%0.18%2.69%
USMV
iShares MSCI USA Minimum Volatility Factor ETF
-1.18%-2.40%-1.09%-0.50%6.31%9.84%7.29%9.71%
GLD
SPDR Gold Shares
-0.18%-8.21%10.30%18.42%49.52%32.89%21.77%13.80%
*Multi-year figures are annualized to reflect compound growth (CAGR)

Monthly Returns

Based on dividend-adjusted daily data since Jul 27, 2012, Risk-Parity Portfolio test's average daily return is +0.10%, while the average monthly return is +3.76%. At this rate, your investment would double in approximately 1.6 years.

Historically, 66% of months were positive and 34% were negative. The best month was Nov 2013 with a return of +285.5%, while the worst month was Dec 2013 at -34.7%. The longest winning streak lasted 7 consecutive months, and the longest losing streak was 4 months.

On a daily basis, Risk-Parity Portfolio test closed higher 55% of trading days. The best single day was Nov 18, 2013 with a return of +38.5%, while the worst single day was Dec 6, 2013 at -20.9%.


JanFebMarAprMayJunJulAugSepOctNovDecTotal
20260.96%-0.21%-4.48%3.08%-0.79%
20253.26%-1.58%-2.18%1.85%4.18%3.29%1.59%0.94%4.41%1.51%-0.96%-0.38%16.83%
20240.77%6.57%4.65%-4.90%4.86%1.50%1.80%0.73%2.90%0.55%8.16%-2.36%27.47%
20239.57%-2.40%7.81%1.21%-0.10%4.80%1.27%-2.75%-3.31%3.05%8.08%5.69%36.95%
2022-6.21%-0.60%2.14%-8.72%-1.87%-7.89%6.60%-4.56%-7.13%3.34%4.55%-3.83%-22.87%
20210.23%3.54%5.93%2.95%-5.51%1.05%4.27%3.48%-4.46%9.63%-1.13%-0.80%19.77%

Benchmark Metrics

Risk-Parity Portfolio test has an annualized alpha of 27.60%, beta of 0.58, and R² of 0.12 versus S&P 500 Index. Calculated based on daily prices since July 27, 2012.

  • This portfolio captured 154.57% of S&P 500 Index gains but only 63.80% of its losses — a favorable profile for investors.
  • Beta of 0.58 may look defensive, but with R² of 0.12 this portfolio is largely uncorrelated with S&P 500 Index — low beta reflects independence, not downside protection. See the Volatility section for a true picture of this portfolio's risk.
  • R² of 0.12 means this portfolio moves largely independently of S&P 500 Index — capture ratios reflect limited market correlation rather than active downside protection. Consider using a more representative benchmark.

Alpha
27.60%
Beta
0.58
0.12
Upside Capture
154.57%
Downside Capture
63.80%

Expense Ratio

Risk-Parity Portfolio test has an expense ratio of 0.13%, which is considered low. Below, you can find the expense ratios of the portfolio's funds side by side and easily compare their relative costs.


Return for Risk

Risk / Return Rank

Risk-Parity Portfolio test ranks 22 for risk / return — below 22% of portfolios on our site. The returns aren't fully compensating for the risk involved. This isn't necessarily a dealbreaker, but factor it into your decision — especially if you're risk-averse.


Risk-Parity Portfolio test Risk / Return Rank: 2222
Overall Rank
Risk-Parity Portfolio test Sharpe Ratio Rank: 3333
Sharpe Ratio Rank
Risk-Parity Portfolio test Sortino Ratio Rank: 3535
Sortino Ratio Rank
Risk-Parity Portfolio test Omega Ratio Rank: 2626
Omega Ratio Rank
Risk-Parity Portfolio test Calmar Ratio Rank: 77
Calmar Ratio Rank
Risk-Parity Portfolio test Martin Ratio Rank: 88
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

Return / Risk — by metrics


PortfolioBenchmarkDifference

Sharpe ratio

Return per unit of total volatility

2.00

2.23

-0.23

Sortino ratio

Return per unit of downside risk

2.78

3.12

-0.33

Omega ratio

Gain probability vs. loss probability

1.33

1.42

-0.09

Calmar ratio

Return relative to maximum drawdown

0.83

4.05

-3.22

Martin ratio

Return relative to average drawdown

2.49

17.91

-15.42


How much return does each position deliver for the risk it carries? Higher values mean better reward for the risk taken.

Risk / Return RankSharpe ratioSortino ratioOmega ratioCalmar ratioMartin ratio
SPYM
State Street SPDR Portfolio S&P 500 ETF
702.373.291.444.3219.24
QQQ
Invesco QQQ ETF
612.233.001.403.9814.88
BTC-USD
Bitcoin
56-0.200.011.00-0.95-1.64
TLT
iShares 20+ Year Treasury Bond ETF
110.450.711.080.360.78
IEI
iShares 3-7 Year Treasury Bond ETF
271.372.051.251.735.59
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF
341.512.191.272.547.83
USMV
iShares MSCI USA Minimum Volatility Factor ETF
190.661.011.121.596.08
GLD
SPDR Gold Shares
431.822.241.343.0610.54

Sharpe Ratio

The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.

Risk-Parity Portfolio test Sharpe ratios as of Apr 11, 2026 (values are recalculated daily):

  • 1-Year: 2.00
  • 5-Year: 0.75
  • 10-Year: 1.41
  • All Time: 1.24

These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns (including price changes and dividends).

Compared to the broad market, where average Sharpe ratios range from 2.14 to 3.05, this portfolio's current Sharpe ratio places it in the bottom 25%. This suggests weaker risk-adjusted returns than most portfolios, possibly due to lower returns, higher volatility, or both. It may be worth reviewing the allocation. You can use the Portfolio Optimization tool to explore options for improving the Sharpe ratio.

The chart below shows the rolling Sharpe ratio of Risk-Parity Portfolio test compared to the selected benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.


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Dividends

Dividend yield

Risk-Parity Portfolio test provided a 1.58% dividend yield over the last twelve months.


TTM20252024202320222021202020192018201720162015
Portfolio1.58%1.56%1.60%1.50%1.39%0.93%1.16%1.45%1.68%1.40%1.56%1.55%
SPYM
State Street SPDR Portfolio S&P 500 ETF
1.11%1.13%1.28%1.44%1.69%1.25%1.54%1.79%2.23%1.75%1.97%1.98%
QQQ
Invesco QQQ ETF
0.46%0.45%0.56%0.62%0.80%0.43%0.55%0.74%0.91%0.84%1.06%0.99%
BTC-USD
Bitcoin
0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
TLT
iShares 20+ Year Treasury Bond ETF
4.52%4.43%4.30%3.38%2.67%1.50%1.50%2.27%2.63%2.43%2.60%2.61%
IEI
iShares 3-7 Year Treasury Bond ETF
3.57%3.48%3.18%2.36%1.37%0.73%1.12%2.01%1.95%1.51%1.33%1.39%
LQD
iShares iBoxx $ Investment Grade Corporate Bond ETF
4.54%4.48%4.45%3.99%3.30%2.30%2.66%3.29%3.67%3.10%3.34%3.47%
USMV
iShares MSCI USA Minimum Volatility Factor ETF
1.58%1.49%1.67%1.82%1.62%1.26%1.81%1.88%2.12%1.77%2.22%2.02%
GLD
SPDR Gold Shares
0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Drawdowns

Drawdowns Chart

The Drawdowns chart displays portfolio losses from any high point along the way. Drawdowns are calculated considering price movements and all distributions paid, if any.


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Worst Drawdowns

The table below displays the maximum drawdowns of the Risk-Parity Portfolio test. A maximum drawdown is a measure of risk, indicating the largest reduction in portfolio value due to a series of losing trades.

The maximum drawdown for the Risk-Parity Portfolio test was 50.61%, occurring on Dec 18, 2013. Recovery took 1248 trading sessions.

The current Risk-Parity Portfolio test drawdown is 4.57%.


Depth

Start

To Bottom

Bottom

To Recover

End

Total

-50.61%Dec 5, 201314Dec 18, 20131248May 19, 20171262
-45.51%Apr 10, 201386Jul 5, 2013110Oct 23, 2013196
-32.38%Dec 17, 2017374Dec 25, 2018408Feb 6, 2020782
-30.32%Nov 9, 2021341Oct 15, 2022430Dec 19, 2023771
-23.71%Feb 15, 202037Mar 22, 202079Jun 9, 2020116

Volatility

Volatility Chart

The chart below shows the rolling one-month volatility.


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Diversification

Diversification Metrics


Number of Effective Assets

The portfolio contains 8 assets, with an effective number of assets of 6.42, reflecting the diversification based on asset allocation. This number of effective assets indicates a moderate level of diversification, where some assets may have a more significant influence on overall performance.

Asset Correlations Table

The table below displays the correlation coefficients between the individual components of the portfolio, the entire portfolio, and the chosen benchmark.

BenchmarkGLDBTC-USDIEITLTLQDUSMVQQQSPYMPortfolio
Benchmark1.000.020.15-0.15-0.180.130.840.900.930.65
GLD0.021.000.070.330.250.290.050.020.010.17
BTC-USD0.150.071.000.00-0.010.050.080.130.130.73
IEI-0.150.330.001.000.790.73-0.03-0.11-0.140.06
TLT-0.180.25-0.010.791.000.78-0.04-0.11-0.150.06
LQD0.130.290.050.730.781.000.190.130.110.24
USMV0.840.050.08-0.03-0.040.191.000.630.720.48
QQQ0.900.020.13-0.11-0.110.130.631.000.790.58
SPYM0.930.010.13-0.14-0.150.110.720.791.000.58
Portfolio0.650.170.730.060.060.240.480.580.581.00
The correlation results are calculated based on daily price changes starting from Jul 27, 2012