Quick guide
How to use this calculator
- Enter the exposure, market, accounting, probability, rate, or risk assumptions named by the fields.
- Use consistent currencies, periods, share units, and percentage conventions.
- Interpret the output only within the displayed model and limitations.
Calculation method
Calculation method
Asset 1 weight = (σ₂² − ρσ₁σ₂) ÷ (σ₁² + σ₂² − 2ρσ₁σ₂).
Fixed decimal scalar arithmetic remains exact until display. Square-root and compound projections are explicitly approximate and reject non-finite results.
Worked example
Worked example
Volatilities 10% and 20% with zero correlation produce weights 80% and 20% and volatility about 8.94%.
Asset 1 weight = (σ₂² − ρσ₁σ₂) ÷ (σ₁² + σ₂² − 2ρσ₁σ₂).
Supported inputs
Precision and limits
Visible input limits
Fixed decimals accept 30 digits and 12 decimal places, with absolute values capped at 1e12 per input and general rates capped at 1000%. Formula-specific shares and probability limits are validated separately.
International scope
No currency, exchange, broker, live security data, accounting standard, tax jurisdiction, contract specification, or regulatory disclosure is selected automatically.
Decision boundary
Outputs are arithmetic scenarios, not forecasts, advice, suitability assessments, trading signals, fair-value opinions, risk guarantees, or recommendations.
Calculator-specific assumptions
This is an unconstrained two-asset mathematical result; weights can be negative or above 100%. Estimates can be unstable and are not an allocation recommendation.