Rytvae Consulting · Think Right · Invest Right
Portfolio Risk Calculator
Result
Chart
Show formula & working
E(Rp) = Σ wiRi · σp² = Σi Σj wiwjρijσiσj (two assets: w₁²σ₁² + w₂²σ₂² + 2w₁w₂ρσ₁σ₂)
Minimum-variance weight (two assets) = (σ₂² − ρσ₁σ₂) ÷ (σ₁² + σ₂² − 2ρσ₁σ₂)
Details
Risk-free rate reference: 91-day Treasury Bill yield: rates and rules as of 28-Oct-2026 · Source: Reserve Bank of India — 91-day T-Bill cut-off yield at the last auction (RBI website, checked 31 Oct 2026). Every figure based on it stays editable.
How this works
A portfolio's return is the weighted average of its assets' returns, but its risk is lower than the weighted average of their risks unless the assets move in perfect step.
For two assets the chart traces every possible mix. The curve bulges left because of diversification; the gold point is the lowest-risk mix.
Frequently asked questions
What correlation should I use?
Work it out from past returns with the Covariance & Correlation calculator, or use a reasonable estimate. Equity and high-quality debt have often had low correlation in India.
Can weights be negative?
Only with short selling. Enter weights that add up to 100%.
Why is the three-asset case without a chart?
With three assets the possible mixes fill an area rather than a line; the figures for your chosen mix are shown.