John McNair gives advice on how to use risk budgeting to your best advantage
As the equity market goes up and down over the years, traders and market analysts are keeping busy analyzing the various risks embedded within their portfolios as they try to figure out if there might be a better way to manage and allocate risk.
While things change as time goes by, John McNair’s views on risk budgeting back in 2009 can still be useful to today’s investors.
Read McNair’s whitepaper on risk budgeting, "Target Practice" to learn about:
- Additive risks
- Portfolio variance disaggregation
- Pension plan ex-post objectives
- Risk budgeting framework
John McNair, now at CHQ Risk Management, will be speaking about using risk budgeting to optimize portfolio risk and return objectives at Quant Invest Canada this October in Toronto.