N Assets Lab

10 assets · 8,000 portfolios

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Max N60

Average volatility20%

Average correlation0.30

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Number of assets (N)10

Factor strength0.40

Higher = more correlated assets

Idiosyncratic vol15%

Return dispersion3.0%

Allow shortingShow correlation heatmapShow weights chart

1.Make diversification disappear. (hint: crank factor strength to max)

2.Create the biggest curvature in the frontier. (hint: low correlation, high vol spread)

3.Find the minimum-variance portfolio. (hint: click on the frontier’s leftmost point)

4.Increase N until extra diversification is tiny. (hint: check the Limits panel below)

What to notice

Click anywhere on the cloud or frontier to inspect a portfolio’s weights.

In “Crisis” mode, the cloud collapses — diversification shrinks when everything correlates.

“Diversifier added” pushes the frontier left, giving better risk/return.