Reference desk / edition 2026.10
Compare model contracts
Compare purpose and assumptions, not an invented performance ranking.
Synthetic educational references. Not a fitted investment strategy, forecast, provider model or client return. First publication: 2026-10-16. Model and engine version 1.0.0.
| Field | Reference A | Reference B |
|---|---|---|
| Model | Equal-weight allocation | Inverse-volatility weights |
| Purpose | A transparent baseline that assigns identical capital weights to a declared number of assets. | Normalize inverse standalone volatility while keeping the missing correlation assumption visible. |
| Formula | w_i = 1 / N | w_i = (1 / sigma_i) / sum_j(1 / sigma_j) |
| Version | 1.0.0 | 1.0.0 |