Once we are familiar with the theory surrounding Risk Parity, thanks to the posts written by T. Fuertes and mplanaslasa, it’s time to put the strategy into practice and try out the algorithm for ourselves. In this post we discover how it works, analyse the strategy and create our own portfolios.

We’ve already read about Rik Parity formulation and how it differs from the Inverse Volatility strategy. So let’s go that one step further and experiment for ourselves. Here you can find the code that we use in Python to implement the strategy.

I dare you to try it and let me know your results!

ϟ o‑o