Papers › A Fast Algorithm for Computing High-dimensional Risk Parity Portfolios

A Fast Algorithm for Computing High-dimensional Risk Parity Portfolios

16 Nov 2013arXiv:1311.4057archive 2025-07-28

Théophile Griveau-Billion, Jean-Charles Richard, Thierry Roncalli

In this paper we propose a cyclical coordinate descent (CCD) algorithm for solving high dimensional risk parity problems. We show that this algorithm converges and is very fast even with large covariance matrices (n > 500). Comparison with existing algorithms also shows that it is one of the most efficient algorithms.

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cran/riskParityPortfolio mentioned on GitHub report
dppalomar/riskparity.py mentioned on GitHubjax report

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