Optimize Your Portfolio
Experiment with portfolio optimization using our AI assistant. Explore how professionals balance risk and diversification.
Key Optimization Approaches
Conservative Income
Example allocation: 60% bonds, 25% dividend stocks, 15% REITs. Often used to prioritize stability and income.
Balanced Growth
Example allocation: 40% large-cap, 20% international, 20% bonds, 20% alternatives. Balances growth with diversification.
Aggressive Growth
Example allocation: 40% growth stocks, 30% tech, 20% emerging markets, 10% alternatives. Designed for higher equity exposure.
Risk Parity
Seeks equal risk contribution from each asset class. Often used by hedge funds for diversification.
How Portfolio Optimization Works
1
Asset Selection
Choose investments that complement each other — e.g., technology for growth, utilities for stability, international for diversification.
2
Risk Balancing
Distribute capital so each holding contributes appropriately to overall portfolio exposure.
3
Automatic Rebalancing
Maintain allocations through systematic rebalancing based on a chosen schedule or thresholds.
Rebalancing Strategies
Calendar Rebalancing
Rebalance on a predetermined schedule: “Rebalance quarterly back to target allocations.”
Threshold Rebalancing
Rebalance when allocations drift significantly: “Rebalance when any position moves 10% from target.”
Tactical Rebalancing
Adjust based on conditions: “Increase equities during significant market pullbacks.”
Advanced Techniques
Risk Parity
Equalize risk contribution across asset classes for smoother allocation.
Factor Investing
Focus on market factors such as value, growth, or momentum to shape portfolio design.
Tax Considerations
Strategies may include tax-loss harvesting or asset location optimization across accounts.
Alternative Assets
Diversify beyond traditional stocks and bonds: e.g., REITs, commodities, or crypto.
Portfolio Examples
1
Conservative Income
Example: 60% bonds, 25% dividend stocks, 15% REITs. Often associated with income-oriented investors.
2
Balanced Growth
Example: 40% large-cap, 20% international, 20% bonds, 20% alternatives. Blends stability with growth potential.
3
Aggressive Growth
Example: 40% growth stocks, 30% tech, 20% emerging markets, 10% alternatives. Higher allocation to equities and emerging markets.
Get Started
Build Optimized Portfolio
Experiment with portfolio optimization using institutional-style approaches. Tell our AI your goals and risk tolerance.
Next Steps
Risk Management
Learn risk control techniques to better manage your portfolio.
Advanced Strategies
Explore multi-indicator and systematic approaches for strategy development.
Technical Analysis
Understand indicators commonly applied in rebalancing and allocation.
Strategy Construction
Learn how to integrate optimization into overall strategy building.
⚠️ Trading and investing involve risk, including the possible loss of capital. eZorro does not guarantee profits or eliminate the risk of losses.