O.P.T.R.A. Portfolio

Portfolio Specification

Portfolio Description

“One Portfolio To Rule (them) All” is a concept created by Frank Vasquez at Risk Parity Radio. It aims to confirm with all of his espoused principles, namely:

  • The holy grail principle: Always be maximally diversified

  • The macro allocation principle: Make sure the big picture allocations make sense at the asset class level

  • The simplicity principle: Don’t add unnecessary complexity

Policy Report

Backtest Report

From to (2y 7m 13d)

Returns (annualized)

Portfolio 20.21%
Benchmark 16.79%

Risk (annualized)

Portfolio 13.84%
Benchmark 11.57%

Sharpe (annualized)

Portfolio 1.07
Benchmark 1.01

Excess Return (annualized)

3.42%

Tracking Error (annualized)

6.13%

Information Ratio

0.56
Statistic Portfolio Benchmark
Downside Volatility 14.41% 11.79%
Sortino Ratio 1.03 0.99
Calmar Ratio 1.05 0.88
Ulcer Index 15.45 15.62
Max Drawdown 14.05% 13.22%
VaR (99% Confidence) $-3,216 $-2,688
VaR (99.9% Confidence) $-4,272 $-3,571
Beta to Benchmark 1.08 N/A

Value at Risk (VaR) is calculated off a $10,000 portfolio value.

Growth Charts

Historical Weights

Return Distribution

Excess Kurtosis

4.70

Skew

-0.05
Data Table
Factor Coefficients
Factor Portfolio Benchmark Excess
Duration Factor 0.8232 0.1662 0.6569
Inflation Factor 0.2897 0.0117 0.2781
Market Factor 0.8072 0.8043 0.0029
Size Factor 0.0748 0.0037 0.0711
Style Factor 0.0247 -0.0018 0.0265
U.S. Tilt (Non U.S.) 0.0053 -0.0019 0.0072
Yield Curve Factor 0.2134 0.0066 0.2068

Adjusted R2

Portfolio 0.91
Benchmark 1.00

Intercept

Portfolio -0.00
Benchmark 0.00

Factor Attribution