alpha-beta separation

1 statements across 1 episodes · 1 bullish · 0 bearish · 1 people on the record · first statement Apr 5, 2021 by Dominic Garcia · across every show →

Everything said about alpha-beta separation, oldest first

Apr 5, 2021 positive
Insight
Garcia: Separately optimizing alpha and beta risk budgets improves total plan risk-return
“And so when you separate those two things, optimize them individually, and bring them back together, what ends up happening is your alpha book tends to be quite low correlated to your beta book. And so the total risk it generates is quite low. So what you're g…”
Dominic Garcia Apr 5, 2021 ▶ 21:24 Dominic Garcia – Risk-based Investing at New Mexico PERA (Capital Allocators, EP.187)
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