Does Rebalance Improve Investment Portfolio Performance?

Portfolio rebalance almost always produces better Sharpe ratio than those who don't.

Simulator

This simulates the investment restuts of a SPY/Cash portfolio rebalanced with different thresholds. The portfolio starts with $1,000 and SPY initial price is $400.Adjust the cash return to represent short-term bond yield.

Cash Ratio: %
SPY Ratio: %
Mean Monthly Return: %
Monthly Return Standard Deviation: %
Cash Mean Monthly Return: %
Investment Duration: year(s).
Choose Rebalance Frequency: Monthly Quarterly Semi-annually Annually
Rebalance Threshold: %.

Results Comparison

Total Returns

• No-rebalanced:0%
• ALL Stock Portfolio:0%
• Rebalanced By Period:0%
• Rebalanced By Threshold:0%

Mean Monthly Return

• No-rebalanced:0%
• ALL Stock Portfolio:0%
• Rebalanced By Period:0%
• Rebalanced By Threshold:0%

Monthly Return Standard Deviation

• No-rebalanced:0%
• ALL Stock Portfolio:0%
• Rebalanced By Period:0%
• Rebalanced By Threshold:0%

Sharpe Ratios