Two-Asset Portfolio Risk Calculator
Portfolio volatility from two assets' weights, vols and correlation — see diversification destroy risk arithmetically.
Formula
Diversification is the only free lunch: with correlation below 1, portfolio risk is always less than the weighted average of parts. The catch markets teach repeatedly — correlations spike toward 1 in crises, exactly when you need the lunch most.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need two-asset portfolio risk calculator results fast? Analysts, founders, traders and finance professionals use the Two-Asset Portfolio Risk Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Two-Asset Portfolio Risk Calculator
Portfolio volatility from two assets' weights, vols and correlation — see diversification destroy risk arithmetically. Diversification is the only free lunch: with correlation below 1, portfolio risk is always less than the weighted average of parts. The catch markets teach repeatedly — correlations spike toward 1 in crises, exactly when you need the lunch most. The governing relationship is σ_p = √(w₁²σ₁² + w₂²σ₂² + 2w₁w₂σ₁σ₂ρ). The Two-Asset Portfolio Risk 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 Two-Asset Portfolio Risk Calculator
- 1Enter Asset A weight (%), Asset A volatility (%), Asset B volatility (%), Correlation into the Two-Asset Portfolio Risk Calculator.
- 2The result is computed automatically using σ_p = √(w₁²σ₁² + w₂²σ₂² + 2w₁w₂σ₁σ₂ρ) — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Two-Asset Portfolio Risk Calculator?
- ✓Computes two-asset portfolio risk 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 Two-Asset Portfolio Risk Calculator?+
Two-Asset Portfolio Risk Calculator uses σ_p = √(w₁²σ₁² + w₂²σ₂² + 2w₁w₂σ₁σ₂ρ). Diversification is the only free lunch: with correlation below 1, portfolio risk is always less than the weighted average of parts. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Two-Asset Portfolio Risk Calculator need?+
Enter Asset A weight (%), 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 Two-Asset Portfolio Risk 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 Two-Asset Portfolio Risk Calculator?+
The catch markets teach repeatedly — correlations spike toward 1 in crises, exactly when you need the lunch most.
What is the Two-Asset Portfolio Risk Calculator based on?+
The method follows authoritative sources: Markowitz (1952) — portfolio selection. The formula and references are shown on the page so you can verify and cite the result.
Related Finance tools
Human Life Value (HLV) Calculator
The economic value of your future earnings to your family — the income-replacement basis for sizing a life-insurance cover.
● LiveTerm Life Insurance Coverage Calculator
How much term-life cover you actually need — replacing income, clearing debts and funding goals, net of existing assets and cover.
● LiveDIME Method Life Insurance Calculator
The DIME formula — Debt + Income + Mortgage + Education — a fast, complete way to size a life-insurance cover.
● Live