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The More Often We Rebalance Investment Portfolio the Better?

No, the frequsncy of rebalancing has no significant effects on the investment results with a sefined cash and stock ratio. Cash here is a proxy for short-term bond yields with no fluctuation return rates.

Furthermore, investment portfolios rebalanced periodically does not have better Sharpe ratios than the non-rebalanced one.

Simulator

This simulates the investment restuts of a SPY/Cash portfolio rebalanced with a defined cash ratio monthly, quarterly, semi-annually and annually. 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).

Results Comparison

Total Returns

  • No-rebalanced:0%
  • Rebalanced Monthly:0%
  • Rebalanced Quarterly:0%
  • Rebalanced Semi-annually:0%
  • Rebalanced Annually:0%

Mean Monthly Return

  • No-rebalanced:0%
  • Rebalanced Monthly:0%
  • Rebalanced Quarterly:0%
  • Rebalanced Semi-annually:0%
  • Rebalanced Annually:0%

Monthly Return Standard Deviation

  • No-rebalanced:0%
  • Rebalanced Monthly:0%
  • Rebalanced Quarterly:0%
  • Rebalanced Semi-annually:0%
  • Rebalanced Annually:0%

Sharpe Ratios

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