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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).

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

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