RISK PARITY

Risk Parity is covered only occasionally in the business and financial press. For those interested in going more into the gritty details there are a number of math-heavy academic articles, beyond the scope of this report... Risk Parity strategies are built on the philosophy that nobody knows what's going to happen next. As such, they are designed to thrive in all economic regimes. Despite the variety of specific Risk Parity implementations, one characteristic remains constant across the board: Through diversification and thoughtful risk allocation, Risk Parity creates true portfolio balance.