Two Asset Portfolio Volatility
Combine two asset volatilities and their correlation.
Your numbers
Portfolio volatility
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Scenario comparison
Up to three snapshots in this tab. Loading one replaces the current inputs.
Formula
σp=√[w²σA²+(1−w)²σB²+2w(1−w)σAσBρ]
Combine two asset volatilities and their correlation.
Worked example
- Asset A volatility (%)
- 10
- Asset B volatility (%)
- 20
- Asset A weight (%)
- 50
- Correlation
- 0
- Portfolio volatility
- 11.1803398875 %
Scope and limitations
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.
Formula version: 23e35e537cdf · Example checked: