Quick guide
How to use this calculator
- Enter the cash flows, values, rates, timing, or portfolio assumptions named in the fields.
- Use one consistent period and currency convention throughout the scenario.
- Read the calculator-specific model limits before interpreting the result.
Calculation method
Calculation method
w1 = σ2/(σ1+σ2); w2 = σ1/(σ1+σ2).
Model, simulation, root, square-root, and compounding outputs are estimates and are visibly marked approximate.
Worked example
Worked example
Volatilities 10% and 20% produce weights 66.667% and 33.333%.
w1 = σ2/(σ1+σ2); w2 = σ1/(σ1+σ2).
Supported inputs
Precision and limits
Visible input limits
Inputs support up to 12 decimal places and lists support at most 1,200 rows. Iteration and simulation bounds are displayed in their fields.
International scope
No exchange, tax system, reporting standard, currency, fund rule, trading calendar, or market convention is selected automatically.
Decision boundary
Outputs are entered scenarios, not valuations, forecasts, risk limits, executable trades, suitability decisions, or recommendations.
Calculator-specific assumptions
Both entered volatilities must be positive. For two assets, inverse-volatility weights equalize component volatility contributions under the shared-correlation model. This is not a general covariance optimizer.