Minimum-Variance Portfolio Calculator
The two-asset weights that minimize total volatility for any correlation — the left tip of the efficient frontier.
Formula
The minimum-variance weights solve for the lowest-risk combination regardless of returns — useful when you trust your risk estimates more than your return forecasts (which is always). The result often holds more of the low-vol asset than intuition suggests; with low correlation, total risk can dip below either component.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need minimum-variance portfolio calculator results fast? Analysts, founders, traders and finance professionals use the Minimum-Variance Portfolio Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Minimum-Variance Portfolio Calculator
The two-asset weights that minimize total volatility for any correlation — the left tip of the efficient frontier. The minimum-variance weights solve for the lowest-risk combination regardless of returns — useful when you trust your risk estimates more than your return forecasts (which is always). The result often holds more of the low-vol asset than intuition suggests; with low correlation, total risk can dip below either component. The governing relationship is w₁* = (σ₂² − ρσ₁σ₂) / (σ₁² + σ₂² − 2ρσ₁σ₂). The Minimum-Variance Portfolio Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Minimum-Variance Portfolio Calculator
- 1Enter Asset A volatility (%), Asset B volatility (%), Correlation into the Minimum-Variance Portfolio Calculator.
- 2The result is computed automatically using w₁* = (σ₂² − ρσ₁σ₂) / (σ₁² + σ₂² − 2ρσ₁σ₂) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Minimum-Variance Portfolio Calculator?
- ✓Computes minimum-variance portfolio calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Minimum-Variance Portfolio Calculator?+
Minimum-Variance Portfolio Calculator uses w₁* = (σ₂² − ρσ₁σ₂) / (σ₁² + σ₂² − 2ρσ₁σ₂). The minimum-variance weights solve for the lowest-risk combination regardless of returns — useful when you trust your risk estimates more than your return forecasts (which is always). The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Minimum-Variance Portfolio Calculator need?+
Enter Asset A volatility (%), Asset B volatility (%), Correlation and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Minimum-Variance Portfolio Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Minimum-Variance Portfolio Calculator?+
The result often holds more of the low-vol asset than intuition suggests; with low correlation, total risk can dip below either component.
What is the Minimum-Variance Portfolio Calculator based on?+
The method follows authoritative sources: Markowitz — minimum-variance portfolio. The formula and references are shown on the page so you can verify and cite the result.
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