25Y Asset/Portfolio Risk-Return Profile – Visualizing risk and return impact of adding asset classes

Summary: This tool visualizes portfolios with two or three asset classes, showing their risk-return profiles over selectable periods. Users can estimate annual total returns by hovering over data points and filter by major asset classes. It highlights how adding asset classes affects portfolio volatility and returns.

What it does

It displays portfolios on a risk-return plane with lines for two-asset and dots for three-asset portfolios, allowing filtering by period and asset class. Hovering reveals estimated annual returns.

Who it's for

Investors and analysts assessing the impact of asset diversification on portfolio volatility and returns.

Why it matters

It demonstrates how adding asset classes reduces volatility and can increase returns when assets are negatively correlated.