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Portfolio Example
60/40 Portfolio Analysis
A classic balanced portfolio split between equities and bonds, evaluated for modern volatility regimes and optimization opportunities.
1. Portfolio Overview
Representative holdings for this structure:
2. Risk Analysis
- Concentration: Equity-bond mix is balanced, but duration sensitivity can cluster in rate shocks.
- Volatility: Moderate volatility profile with lower downside than equity-only portfolios.
- Correlation: Stock-bond correlation can rise in inflation shocks, reducing diversification.
3. Optimization Example
Original Sharpe Ratio
0.54
Optimized Sharpe Ratio
0.74
- - Reduced overlap between broad-market equity ETFs.
- - Improved bond sleeve diversification across duration buckets.
- - Added defensive sector and low-volatility tilt for stress resilience.
4. Optimized Allocation
- Global Equity: 48%
- Core Bonds: 32%
- Short Duration / Cash Proxy: 10%
- Defensive Diversifiers: 10%
5. Next Step
Apply this framework to your own holdings and constraints to generate personalized recommendations.