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Optimal allocation vs historical allocation

JR
Jordan Rodriguez02 сентября 25 г. | Опубликовано в Общая

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 Shevchenko06 сентября 25 г.
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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