There are many different types of risk management. The dynamic asset allocation allows us to adapt a portfolio to an international or regional market situation and increase its performance.
Dynamic asset allocation is a portfolio management strategy that frequently adjusts the mix of asset classes to suit market conditions.
How to optimise the risk-return ratio?
In that case, we choose appropriate weights for the various asset classes. Adjustments usually involve reducing positions in the worst-performing asset classes while adding to positions in the best-performing assets. (Dynamic Asset Allocation: What it is, How it Works (investopedia.com))
There are three types of asset allocation: Variations on:
What is Dynamic Asset Allocation for?
There are many different types of risk management. The dynamic asset allocation allows us to adapt a portfolio to an international or regional market situation and increase its performance.
Dynamic asset allocation is a portfolio management strategy that frequently adjusts the mix of asset classes to suit market conditions.
How to optimise the risk-return ratio?
In that case, we choose appropriate weights for the various asset classes. Adjustments usually involve reducing positions in the worst-performing asset classes while adding to positions in the best-performing assets. (Dynamic Asset Allocation: What it is, How it Works (investopedia.com))
There are three types of asset allocation: Variations on:
- MVO = Risk Parity; Black Litterman
- CAPM = 60/40; Portfolio insurance; Surplus optimisation
- Dynamic = Tactical asset allocation; Currency overlay; Diversified growth funds
Passive Investing Theory, part four: Portfolio Theory (sensibleinvesting.tv)