Covariance Matrix on RΞCURSIONhttps://www.carlvinjerry.com/tags/covariance-matrix/Recent content in Covariance Matrix on RΞCURSIONHugo -- gohugo.ioenTue, 16 Jun 2026 09:00:00 +0300The Mathematics of Allocating Risk Instead of Capitalhttps://www.carlvinjerry.com/posts/quantitative-finance/risk-parity-mathematics/Tue, 16 Jun 2026 09:00:00 +0300https://www.carlvinjerry.com/posts/quantitative-finance/risk-parity-mathematics/This post explains risk parity through equal risk contribution, showing why capital weights can hide concentrated portfolio risk. We derive the core variance and risk contribution formulas, compare ERC with inverse-volatility weighting, and discuss covariance estimation, leverage, and regime risk.